Deal for the ruble
In a statement published on the Telegram channel, the Ministry of Industry and Trade outlined the agreements affecting Renault Russia. 100% of CJSC Renault Russia would come under the Moscow city government, while 67.69% of AvtoVAZ would be transferred to the Russian Federation, represented by the Federal State Unitary Enterprise NAMI, with the remaining shares held by Rostec. The plan also includes Renault’s option to reclaim its stake in AvtoVAZ within the next six years. These terms have already received approval from the Russian Federal Antimonopoly Service.
The ministry stated that transferring Renault Group shares to the state would preserve AvtoVAZ’s controllability and enable ongoing operations despite sanctions. This move aims to safeguard core competencies, the production cycle, and employment. Denis Manturov, the Minister of Industry and Trade, commented on the outlook for NAMI’s participation in AvtoVAZ’s management, noting NAMI’s extensive automotive experience and its modern R&D and production capabilities. He highlighted the design and engineering team behind the Aurus brand, which demonstrates the strength of NAMI’s modular platform approach. (source: official statements)
It was also noted that, under existing licenses, the production of the entire LADA range would continue at AvtoVAZ plants, and AvtoVAZ would maintain after-sales service for Renault vehicles in the Russian market. In discussions with RBC, Renault valued its Russian assets at €2.195 billion. On April 26, Manturov described the stake transfer to AvtoVAZ as a “conditionally a deal” measured in rubles, with a five- to six-year option for Renault to buy back shares. He stressed that there would be no gifts in this arrangement and that the transfer of Renault’s assets was not part of the authorities’ long-term plans. If a supplier cannot meet component needs, the government would seek alternatives to ensure continuity for all automakers facing delays. (source: RBC, Manturov remarks)
“If a company cannot consistently supply components today, waiting forever is not an option,” Manturov stated. The emphasis was on maintaining supply chains and broader industrial resilience across the sector.
The return of the Moskvich
Sergey Sobyanin, the mayor of Moscow, remarked on his official site that Renault’s decision to close its Moscow factory would not be allowed to leave thousands of workers unemployed. Consequently, the city would take the plant onto its balance sheet and resume passenger car production under the historic Moskvich brand. KamAZ would serve as the primary partner in this venture, with local production of as many car parts as possible being prioritized within Russia. The plan envisions starting with classic internal combustion vehicles, with a future shift toward electric cars as capabilities develop.
Sobyanin recalled the Volgogradsky Prospekt site’s long, storied past. The plant began producing Ford vehicles almost a century ago, and for decades helped shape the domestic Moskvich identity. Since 1998, collaboration with Renault and its Logan, Duster, and Sandero models has been part of the plant’s history. In 2022, a new chapter was opened in Moskvich’s story.
Renault announced a pause in Russian production on February 25 due to interruptions in component supply, with the Moscow line halted on February 28. Earlier, Renault Group chief Luca de Meo warned in an interview with the Financial Times that the unstable geopolitical situation around the Ukraine crisis could threaten Russia’s automotive production. RBC reported that the Renault-Nissan-Mitsubishi alliance, including AvtoVAZ, accounts for about 35.5% of the Russian car market. (source: official statements, Financial Times, RBC)