Rostec transferred its shares in AVTOVAZ to FSUE NAMI

Rostec State Corporation withdrew from the shareholders of JSC AVTOVAZ, the press service of the state corporation informed RIA Novosti. We are talking about the transfer of 32.3% in "LADA Auto Holding" - a joint venture that controls AVTOVAZ - in favor of FSUE "NAMI" subordinate to the Ministry of Industry and Trade, follows from the data of the Unified State Register of Legal Entities. According to sources in the industry, this decision was due to the fact that the presence of a state corporation under sanctions among the owners of AVTOVAZ prevented the plant from ordering components abroad.

JV "LADA Auto Holding" was registered at the end of 2021, in fact it was the transfer of an asset that controls AVTOVAZ to Russian jurisdiction. Prior to this, the company was controlled through the Dutch joint venture Alliance Rostec Auto B.V., which was owned by Rostec (32.3%) and Renault (67.7%).

After the start of the special military operation, French automaker decided to leave the Russian Federation: the share in AVTOVAZ was transferred to FSUE NAMI, and the plant in Moscow was transferred to the government of the capital. Thus, now FSUE "NAMI" has become a 100% owner of AVTOVAZ. At the same time, Renault has an option to repurchase its stake in AVTOVAZ, which can be exercised within the next 6 years.

It is worth noting that FSUE NAMI, subordinated to the Ministry of Industry and Trade, has become the state center for consolidating assets in the Russian automotive industry against the backdrop of the withdrawal of foreign automakers from the local market. In addition to Renault's controlling stake in AVTOVAZ, the institute also previously consolidated the assets of Japanese concerns Nissan and Toyota, including their St. Petersburg car plants. NAMI also owns a 63.5% stake in the Aurus luxury car project (Aurus LLC).

As AUTOSTAT previously reported, the former Nissan plant in Russia, which was purchased from FSUE NAMI by AVTOVAZ in February 2023, will be renamed LADA Saint Petersburg. Vehicle production at this facility will begin in June 2023. These will be new models under LADA brand in C and D segments, including crossovers and sedans. By the end of the year, 10,000 cars will roll off the assembly line, and in the next two years, production volumes will increase to 30,000 cars per a year. According to unofficial data, the first model of St. Petersburg assembly will be LADA X-cross 5 mid-size crossover, which is a converted version of Chinese FAW Bestune T77.