McDonald’s is not the only company involved in the war in Ukraine, as the Renault Group has signed an agreement with Moscow to sell 100% of Renault’s Russian shares. The company is selling its 67.69% stake in AvtoVAZ to NAMI (Central Research and Development Automobile and Engine Institute).
However, the company is not giving a clear break with AvtoVAZ because the agreement gives Renault the option to buy its shares “at a specified time in the next six years”. As a result, if the cold snap prevails and sanctions on Russia are lifted, Renault may use that option in the future.
In a statement, Renault Group CEO Luca de Mio said, “Today, we have made a difficult but necessary decision and we are making a responsible choice for our 45,000 employees in Russia, where we are preserving the group’s performance and our ability to return home.” The future, in a different context. I am confident in Renault Group’s ability to accelerate its transformation and exceed its medium-term goals. “
Also read: Renault is selling AvtoVAZ to the Russian Institute of Science for just over 1 US cent
The move was a shock to Renault but, due to conflicts and sanctions, the company’s options were limited. The automaker also stated that “the amount of consolidated assets, property, plants and equipment and the value of the Russian group’s goodwill account should be recorded in the results of the first half of the cash adjustment charge 2022. As of December 31, 2021, this value was 2,195 million euros (2.3 /). £ 1.9 billion).
An earlier report suggested that a single ruble was sold to AvtoVAZ NAMI, equivalent to $ 0.015 (£ 0.013 / € 0.015). This is a bitter sweet consequence for Renault’s ladder ownership, although the door will remain open for possible future returns.