Russia Nationalizes Assets of Renault Group

Russian Ministry of Industry and Trade has signed an agreement with Renault Group to transfer 67.69% of AVTOVAZ shares to state-owned FSUE NAMI company.

Rostec said it remains the owner of 32.31% of the automaker's shares. An important condition is an option for Renault to buy back its stake in AVTOVAZ, which can be exercised within the next six years. Both transactions were approved by the FAS Russia.

“The transfer of a share of the Renault Group to the state will ensure the preservation of the controllability of AVTOVAZ and the possibility of continuing the operation of the enterprise in the face of sanctions restrictions. In this way, we will preserve key competencies, the production cycle and jobs,” said Denis Manturov, Minister of Industry and Trade of the Russian Federation.

According to the minister, NAMI has significant experience in the automotive industry and has a modern research and development base, which allows it to successfully solve problems in the field of research, design, construction, development and testing of vehicles, as well as the production of products in the automotive industry.

“The competitiveness of the NAMI design and engineering team has been confirmed by the creation of vehicles under the Aurus brand based on a single modular platform,” the head of the Russian Ministry of Industry and Trade emphasized.

Within the framework of existing licenses, the production of the entire line of LADA cars at AVTOVAZ plants will continue. AVTOVAZ will also carry out service maintenance of Renault cars in the Russian market.