MOSCOW, April 27 ― Renault SA will transfer its 68 per cent stake in carmaker Avtovaz to a Russian science institute for a nominal sum, Interfax cited Russian Trade Minister Denis Manturov as saying yesterday.
Renault will have the right to buy the stake back within the next five to six years, Interfax added, citing Manturov. He also said Renault's stake in its Moscow plant would be passed to the city's local government.
Renault, the Western carmaker most exposed to the Russian market, said last month it would suspend operations at the plant amid mounting pressure over its continued presence there since the country invaded Ukraine.
Manturov said Renault had decided to transfer the Avtovaz stake to the Moscow-based NAMI automobile and engine research institute because it lacked the ability to keep its Russian operations going.
The deal would be worth a single rouble, he said, giving Renault the option to buy the stake back.
“But if during this period we make investments, then that will be taken into account when it comes to the cost. There won't be any presents here,” Interfax quoted him as saying.
Last month Renault said it was considering a €2.2 billion (RM10 billion) non-cash writedown to reflect the potential costs of suspending operations in Russia. ― Reuters