# Renault to offload its stake in Lada maker for one rouble, Russia says Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-04-27 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Renault transfers Avtovaz stake to auto research institute Meta Description: Renault's 68% stake in Avtovaz to be transferred for one rouble, while factory in Moscow will also be handed to city's government amidst Russian trend URL: https://financedigest.com/renault-to-offload-its-stake-in-lada-maker-for-one-rouble-russia-sayshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-04-27t101749z2lynxnpei3q099rtroptp4ukraine-crisis-russia-renault-1736815812160-compressed.jpg) (Reuters) -Renault will transfer its 68% stake in Russia’s biggest carmaker Avtovaz to an auto research institute for one symbolic rouble, Russia said on Wednesday, the latest example of local institutions snapping up bargains as Western firms flee. The trade ministry also said Renault’s factory in Moscow, which produces cars under the Renault and Nissan brands, would be passed to the city’s government, in another sign of what Russian authorities plan to do with Western assets. The French carmaker and the French government, which owns a 15% stake in Renault, both declined to comment on the deal, which was first reported by Russian news agencies citing Trade Minister Denis Manturov. The trade ministry said Renault would have the right to [buy back](https://www.financedigest.com/uks-bellway-to-buy-back-shares-hike-social-housing-output.html "UK’s Bellway to buy back shares, hike social housing output") its Avtovaz stake within five to six years from NAMI, an institute founded over century ago behind the design and building of Russia’s cars and trucks – including the limousines used by President Vladimir Putin. The moves are likely to underscore concerns that Russian firms and institutions are snapping up the country’s most prized assets for a bargain as [Western companies scramble to comply with sanctions over the Ukraine](https://www.financedigest.com/analysis-russian-gold-removed-from-some-western-funds-after-ukraine.html "Analysis-Russian gold removed from some Western funds after Ukraine") conflict, as well as threats from the Kremlin that foreign-owned assets may be seized. The [Russian government is drawing up legislation that could see control of foreign companies handed over to external local management and make it a criminal offence for foreign executives and companies to implement sanctions](https://www.financedigest.com/new-u-s-sanctions-for-russian-bank-oligarchs-crypto-miner-bitriver.html "New U.S. sanctions for Russian bank, oligarchs, crypto miner BitRiver"). Renault, the Western carmaker most exposed to Russia, said last month it would suspend operations at its Moscow [plant and was considering a 2.2 billion](https://www.financedigest.com/intel-wants-5-billion-more-in-german-subsidies-for-chip-plant-bloomberg-news.html "Intel wants billion more in German subsidies for chip plant – Bloomberg News") euro ($2.3 billion) non-cash writedown to reflect the potential costs of the suspension. Shares in Renault fell in [early trading but later](https://www.financedigest.com/are-the-over-55s-accessing-their-pensions-early-failing-to-plan-for-later-life.html "Are the over-55s accessing their pensions early failing to plan for later life?") reversed those losses to trade up 1.1% at 0954 GMT, outperforming France’s blue-chip index. Modest positive as this brings the issue closer to resolution, keeps the [door open](https://www.financedigest.com/lack-of-electric-vans-opens-door-for-chinese-other-ev-makers.html "Lack of electric vans opens door for Chinese, other EV makers") to return, though clearly many unknowns on when/if Russia vehicle market rebounds and geopolitical climate cools,” Credit Suisse analysts wrote. NO PRESENTS Renault decided to transfer its stake in Avtovaz, which owns the famed Lada brand, to NAMI because it lacked the ability to [keep its Russian](https://www.financedigest.com/commodities-trading-houses-help-keep-russian-oil-flowing.html "Commodities trading houses help keep Russian oil flowing") operations going, the trade ministry said. The deal would be worth a single rouble and gives Renault the [option to buy the stake back](https://www.financedigest.com/3-options-to-consider-when-you-owe-the-irs-back-taxes.html "3 Options to Consider When You Owe The IRS Back Taxes"), it said. But if during this period we make investments, then that will be taken into [account when it comes](https://www.financedigest.com/why-is-accounting-coming-up-short-when-it-comes-to-new-hires.html "Why is Accounting Coming Up Short When It Comes To New Hires?") to the cost. There won’t be any presents here,” Interfax quoted Manturov as saying. Moscow’s [invasion of Ukraine](https://www.financedigest.com/ukraine-asks-for-south-korea-cybersecurity-aid-amid-russia-invasion.html "Ukraine asks for South Korea cybersecurity aid amid Russia invasion") on Feb. 24 has prompted a mass corporate exodus from Russia. More than 750 [companies have announced](https://www.financedigest.com/steemit-announces-new-vp-of-marketing-to-take-the-company-from-crypto-to-consumer.html "Steemit Announces New VP of Marketing to Take The Company From Crypto to Consumer") they are curtailing operations there to some degree, according to the Yale School of Management. French electrical equipment maker Schneider Electric said on Wednesday it would sell its [operations in Russia and Belarus to local](https://www.financedigest.com/kfc-franchisees-in-russia-ask-govt-to-halt-sale-of-stores-to-local-operator-ria.html "KFC franchisees in Russia ask govt to halt sale of stores to local operator – RIA") management and had signed a letter of intent with the designated buyers. Another high-profile example is [French bank Societe Generale which took a 3 billion euro income hit](https://www.financedigest.com/nestle-closes-french-buitoni-factory-hit-by-e-coli-outbreak.html "Nestle closes French Buitoni factory hit by E.coli outbreak") from selling its Rosbank subsidiary to Interros Capital, an investment firm linked to Russian oligarch Vladimir Potanin. There are only a few examples of interest from foreign companies in taking over [Russian businesses](https://www.financedigest.com/pizza-firm-dp-eurasia-considers-divestment-of-russian-business.html "Pizza firm DP Eurasia considers divestment of Russian business"). Anheuser-Busch InBev is in talks to [sell its stake](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") in its Russian and Ukrainian venture to its Turkish partner, in a deal that could result in a $1.1 billion charge for the world’s largest brewer. British energy company Shell was reported to be in talks with some Chinese firms to sell its [stake in a major](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") Russian gas project. Shell declined to comment on the report. [Russia calls its actions in Ukraine](https://www.financedigest.com/analysis-action-wanes-at-u-n-to-isolate-russia-almost-six-months-into-ukraine-war.html "Analysis: Action wanes at U.N. to isolate Russia almost six months into Ukraine war") a “special operation” to disarm Ukraine and protect it from fascists. [Ukraine and the West say](https://www.financedigest.com/south-korea-has-not-supplied-lethal-weapons-to-ukraine-president-says.html "South Korea has not supplied lethal weapons to Ukraine, president says") the fascist allegation is baseless and that the war is an unprovoked act of aggression. ($1 = 0.9404 euros) (Reporting by David Ljunggren; Additional reporting by Dominique Vidalon, Tassilo Hummel and Josephine Mason; Editing by Richard Pullin, Stephen Cotes and David Clarke) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---