The Renault Group Board of Directors unanimously approved agreements to sell 100% of the company’s shares in Renault Russia to Moscow City entity. In addition, the Renault Group will sell its 67.69% interest in AvtoVAZ, the state-owned Russian car manufacturer, to NAMI (the Central Research and Development Automobile and Engine Institute).

Announced May 16, the transaction closings are not subject to any conditions, and all required approvals have been obtained, according to a Renault press statement.

The agreement includes an option for Renault Group to buy back its interest in AvtoVAZ, exercisable at specific times during the next six years.

"Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group's performance and our ability to return to the country in the future, in a different context,” said Luca de Meo, CEO Renault Group. “I am confident in the Renault Group's ability to further accelerate its transformation and exceed its mid-term targets.”

Renault Group comprises four brands – Renault, Dacia, Alpine and Mobilize and holds alliances with Nissan and Mitsubishi Motors. Established in more than 130 countries, the Group sold 2.7 million vehicles in 2021 and employs nearly 111,000 people.