In an attempt to navigate the new economic realities after Russia’s military campaign in Ukraine, Renault has decided to sell its Russian assets for just one Ruble.
The Russian Trade Ministry said on Wednesday that Renault plans to sell its stake in Russia’s Avtovaz for a symbolic price of one ruble.
Renault will hand over a 68% ownership to NAMI Russia, the auto research institute best renowned for inventing the Aurus Senat, Russia’s first luxury vehicle, which is presently driven by President Vladimir Putin. Renault appears to have taken this action because it is unable to maintain its Russian business.
Renault’s factory in Moscow, which builds cars under the Renault and Nissan brands, will be given to the city government, according to the Trade Ministry.
Renault has remained silent on the matter.
If the French carmaker wants to return to the Russian market, it will be able to purchase back its Avtovaz share within five to six years, according to the trade ministry.
“But if during this period we make investments, then that will be taken into account when it comes to the cost [of the shares].” In response to the move, Trade Minister Denis Manturov stated, “We won’t be giving any presents here.”
The deal comes as Western companies attempt to navigate new economic realities. In retaliation for Russia’s military campaign in Ukraine, Western powers have imposed unprecedented sanctions on Russia in the last two months.
Many international corporations are being pressured to exit the Russian market, according to the Yale School of Management, which estimates that over 750 companies are closing or scaling back their activities in Russia.
Renault has been the most exposed Western carmaker to Russia until now. Last month, the company announced the closure of its Moscow factory, estimating the cost of the move at €2.2 billion ($2.3 billion).