Another frozen shower for Wladimir Putingoing through a period of intense tension at the front the domestic economy and international relations. In addition to the increasingly severe penalties imposed by theEuropean Union and from United Statesthe head of Kremlin it also has to face the painful question that many multinationals are leaving Russia.
The latest sensational report concerns the activities of the French automaker Renaultwhat happened to a decision made in the last few days ceded to the state This was announced on: Russian all its shares in the country Moscow Ministry of Industry and Trade in an opinion. The announcement follows Withdrawal of Renault from Russia after the invasion of Ukraine in March.
How much are Renault shares worth in Russia and what is happening now?
“You are signed Transfer Agreements of Russian assets from the Renault group Russian Federation and al Moscow government‘ the ministry said in a statement. The actions of Renault Russia were transferred to the Moscow City Administrationwhile the State Automotive Research Institute (NAMI) became the owner of Renault’s stake in Russian automaker Avtovaz.
The Moscow government now has the 100% interest from Renault Russia, while the stake in Avtovaz went straight to NAMI 67.69% of the company as a whole. there Avtovaz will continue to assemble the full range of vehicles in its factories and provide maintenance services Renault cars present and circulating in Russia today.
The contract of sale also provides for a buyback option until Renault group its interest in Avtovaz, exercisable at specified times in the next 6 years. Now Russian assets are being deconsolidated within the Balance sheet of the multinational corporation for the semester ending June 30, 2022 and is accounted for as discontinued activities.
The prospects of the French carmaker
That Renault group now confirmed financial perspectives was announced on March 23, 2022, but with the clarification that on the occasion of a capital market day taking place in the fall of 2022 market strategy for 2023: The aim is not to give up the role reference actor competitive, technological and sustainable for the oriental market.
In fact, Russia is the second world market of the Renault Group to Europe, with almost 500,000 vehicles sold in 2021, mainly thanks to the company AvtoVAZ, which was acquired at the end of 2016 with a 69% stake and produces the two most registered cars in Russia (Lada Vesta and Granta) , with an overall market share of 28.8%.
Renault numbers in Russia and the risk of heavy losses
The exit from Russia will cost Renault about 10% of sales. In the first quarter, the French company posted total sales of around 100,000 euros in the country 900 million eurosof which 527 million from his participation in Avtovaz e 367 million from Renault Russia, who managed the great facility at the gates of Moscow, where Dacia Duster, Renault Kaptur, Renault Arkana and Nissan Terrano were produced, for a total of approx 95,000 vehicles.
“We have made a difficult but necessary decision and we are making a responsible choice for ours 45,000 employees in Russia,” said the CEO of Renault, Luca de Meo.