The share of the French automaker Renault, which suspended operations in Russia, in AVTOVAZ, came under the control of the Federal State Unitary Enterprise Central Research Automobile and Automotive Institute NAMI. Thus, NAMI became the owner of a 67.7% stake in Lada Auto Holding LLC, the remaining 32.3% of which was retained by Rostech. LLC Lada Auto Holding, registered in Moscow, has owned 100% of AVTOVAZ shares since the end of the previous year. Prior to this, Renault and Rostech controlled the automaker through the Dutch offshore Alliance Rostec Auto B.V., Interfax reports. After the suspension of Renault operations in Russia, the former Minister of Transport of the Russian Federation and Vice-Governor of St. Petersburg, Maxim Sokolov, was appointed President of AVTOVAZ, who replaced the head of Renault in Russia and the CIS, Nicolas Maure, at this post.
Recall that on May 16th, agreements were signed on the transfer of Russian assets of the Renault Group to state ownership. As a result of the transactions, the shares in the assets will be distributed as follows: 100% of the shares of CJSC Renault Russia will be owned by the Moscow government, 67.69% of the shares of AVTOVAZ will become the property of the Russian Federation represented by FSUE NAMI subordinated to the Ministry of Industry and Trade of Russia. The remaining shares of AVTOVAZ will be retained by Rostech. An important condition is the option for Renault to repurchase its stake in AVTOVAZ, which can be exercised within the next 6 years.
Within the framework of existing licenses, the production of the whole line of LADA cars at the production sites of AVTOVAZ will continue. In addition, in accordance with the reached agreements, the Togliatti plant will produce the Renault Duster crossover and the Sandero hatchback under the LADA brand. According to sources, the transfer of production of Renault Arkana and Kaptur models from the Moscow plant in Togliatti was recognized as economically inexpedient. AVTOVAZ will also carry out after-sales service of Renault cars in the Russian market.
