Renault divests assets in Russia due to war in Ukraine

Renault said on Monday, active Russia and sells both its Russian subsidiary to the Moscow City Council and the Russian Federation. majority stake in automaker Avtovaz to a Russian state body, but reserves the right to buy back for the next six years.

probability of recovery andavtovaz control, The company, which owns 67.69% of the capital and is now in the hands of the Automobile and Engines Research and Development Central Institute (NAMI), is considered in the transfer agreement “at certain periods” during these six years.

The French auto group said in a statement that it would include it in its calculations as it progressed by suspending its activities in Russia, its second largest market after France, on March 23. a correction corresponding to the value of these assets.

As of 31 December 2021, these assets are 2.195 million euros When the results of the first period are announced in July, the adjusted value according to the transfer date will be determined.

For Renault, getting rid of Avtovaz now for a price that the company wants to keep secret, even though he guarantees it’s not zero, It is financial relief to the extent that it ceases to be a constant financial drain.has been paying its 45,000 employees in Russia since recent weeks, even though they produce nothing.

400,000 vehicles produced in Russia

Now these workers will report to the Moscow City Council. ex Renault Russia and NAMI – In the case of Avtovaz, which is part of the structure of the Russian Ministry of Industry. Renault Russia produced last year 95,000 cars of the Duster and Arkana models are mainly aimed at the Russian market and surrounding countries. It will no longer be possible to assemble Renault cars at Moscow plants. As for Avtovaz, in 2021 it will be about 400,000 vehicles, basically with the Lada brand.

CEO Luca de Meo, in a statement they received He described the operation as “a difficult but necessary decision” and “responsible”. most of them are no longer 45,000 employees in Russia. De Meo also emphasized they retain the option of returning to Russia in the future, but in a “different context”.

Beyond the setback of having to give up what was his second market for his business, the CEO made an effort to convey the message that he had “confidence” in his own business. “Renault’s ability to further accelerate its transformation and exceed its medium-term goals.”

Source: Informacion

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