French Automaker, Renault, Told To Pay $1.3 Billion To Re-enter Russian Market

AvtoVAZ CEO told reporters that french automaker, Renault, must pay $1.3 billion if it wants to re-enter Russian market.

Renault had in April 2022 transferred its 68% stake in AvtoVAZ to Russian state for one rouble, following its invasion of Ukraine.

Speculation about Renault’s potential return to Russian market follows efforts by Trump and Putin to improve bilateral ties.

AvtoVAZ, Russia’s biggest car manufacturer, which makes the Lada range, says french automaker, Renault, will have to pay at least 112.5 billion rubles ($1.3 billion) to return to Russian market.

Renault had in April 2022 transferred its 68% stake in AvtoVAZ to Russian state for one rouble, following its invasion of Ukraine on February 24, leaving behind assets worth billions of dollars.

Speculation about Renault’s potential return to Russian market follows efforts by U.S. President Donald Trump and Russian President Vladimir Putin to improve bilateral ties.

“To return to the Russian market Renault will have to reimburse at least 112.5 bln rubles ($1.3 bln) that were invested in the development of the AvtoVAZ car company during the absence of the French company in the country,” AvtoVAZ President Maxim Sokolov told reporters.

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According to him, Renault, which used to own a majority stake in AvtoVAZ, allocated about 20-22 billion rubles ($226-249 million) annually to upgrade the Russian automaker’s capacities.

After Renault left Russia, he said NAMI invested 27.5 bln rubles ($311 mln) in 2023, about 40 bln rubles ($453 mln) in 2024, adding that at least 45 bln rubles ($510 mln) will be invested this year.

“They (investments – TASS) exceed the average annual investment volumes that were made when Renault was the shareholder in the early 20s. So, it is clear that these investments will have to be reimbursed somehow upon return,” he said.

When Renault left Russia in 2022, its Russia plant were transferred to the city of Moscow while Renault’s share in AvtoVAZ were transferred to the NAMI institute, which operates under the Industry and Trade Ministry.

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