French automaker Renault is willing to sell its stake in Russia’s largest car manufacturer for a single ruble, Russian state media outlet, Ria Novosti reported.
Russia’s industry minister, Denis Manturov, said Renault will sell its 68% stake in AvtoVAZ – the maker of the LADA brand of vehicles – to NAMI, a Russian state-backed automotive research and development center, the agency reported.
Manturov said that Renault would have the option to buy back its stake in five or six years, the agency said, although the value of the shares may change if Russia makes investments during the period.
“There will be no gifts here,” Manturov said, according to Novosti.
Western firms are rushing to halt business in Russia after the country’s invasion of Ukraine, as sanctions against Moscow and consumer sentiment made it challenging for them to continue operations in the country.
Renault was willing to continue running its Russian operations following the invasion. However, cash reserves were burning as the firm was trying to pay salaries and suppliers during sales and production sharp decline, the Wall Street Journal reported.
