Renault received 2.3 billion Euros of loss from the termination of activities in Russia

The French automaker Renault estimated a net loss due to the exit from the Russian market and the cessation of production activities in the country. As follows from the company's financial statements, in the first half of 2022 it was 2.3 billion Euros. 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 were transferred to the Moscow government, 67.69% of the shares of AVTOVAZ became the property of the Russian Federation represented by the Federal State Unitary Enterprise NAMI, subordinated to the Ministry of Industry and Trade of Russia.

The remaining shares of AVTOVAZ were retained by Rostec. An important condition is the option for Renault to repurchase its stake in AVTOVAZ, which can be exercised within the next 6 years. As for the Moscow plant Renault Russia, it has been renamed Moskvich, and the Renault lineup will not be produced there.