Renault Group signs pact to sell Renault Russia, controlling stake in AVTOVAZ

The agreement provides for an option for Renault Group to buy back its interest in AVTOVAZ, exercisable at certain times during the next 6 years.

Autocar Pro News Desk By Autocar Pro News Desk calendar 16 May 2022 Views icon4258 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

The Renault Group Board has unanimously approved an agreement to sell 100 percent of Renault Group's shares in Renault Russia to Moscow City entity and its 67.69 percent interest in AVTOVAZ to NAMI (the Central Research and Development Automobile and Engine Institute).

The agreement provides for an option for Renault Group to buy back its interest in AVTOVAZ, exercisable at certain times during the next 6 years. Luca de Meo, CEO Renault Group explained, "We are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group's performance and our ability to return to the country in the future, in a different context." The closing of these transactions is not subject to any conditions, and all required approvals have been obtained

As announced on March 23, a non-cash adjustment charge amounting to the accounting value of the consolidated intangible assets, property, plant and equipment and goodwill of the Group in Russia should be recorded in the 2022 first half results. As of December 31, 2021, this value amounted to 2,195 million euros.

Russian operations will consequently be deconsolidated in Renault Group consolidated financial statements for the six-month period ended on June 30, 2022 and will be accounted for as discontinued activities. Renault Group confirmed its financial outlook as announced on March 23, 2022. 

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