Its 100 per cent shares in Renault Russia, which operates a plant in Moscow, will go to the city of Moscow.
“Today, we have taken a tough but required decision, and we are building a accountable choice in direction of our 45,000 employees in Russia,” CEO Luca de Meo said in the assertion.
The move preserved the group’s functionality and its skill to return to the region in the future in a distinct context, he added.
The corporation, which is 15 p.c owned by the French condition, verified a non-income writedown of just about 2.2 billion euro ($2.29 billion) to mirror the probable costs of suspending functions in Russia.
De Meo has been apparent about the French carmaker’s want to return to Russia soon after the war in Ukraine is fixed and ordinary relations are inevitably restored.
The AvtoVAZ manufacturing facility at Togliatti may well make Renault Duster cars and trucks underneath the Lada brand, Denis Pak, head of the car or truck sector section at the Market and Trade Ministry, claimed in a televised job interview with Rossiya-24.
He said an settlement was reached with Renault.
Renault was not immediately obtainable to remark.
Moscow Mayor Sergei Sobyanin stated that in get to preserve 1000’s of positions, Renault’s plant in the metropolis would be utilized to restart creation of the Soviet-period Moskvich manufacturer.
The Moskvich, which interprets as a native of Moscow, ceased manufacturing close to two many years ago.
Sobyanin said Moscow was functioning with truck maker Kamaz and Russia’s Sector and Trade Ministry to localize as significantly vehicle ingredient output in Russia as achievable.
Pak said Moskvich manufacturing was anticipated to commence this calendar year.
The Moscow plant will be renamed Moscow Auto Manufacturing facility Moskvich, he mentioned.
Two sources common with the situation explained to Reuters that Renault Russia and the AvtovVAZ stake ended up sold for a symbolic a single ruble ($.016) each.