Russia nationalizes Renault factory

RUSSIA / FSU POLITICS - In Brief 16 May 2022 by Alex Teddy
On May 16 the Mayor of Moscow said the French car factory had been nationalized, and the Soviet-era car the Moskvitch will be brought back. This is the first significant transfer of a private asset to the state since the Ukraine War began.Most of the 45,000 Renault factory workers and subcontractors will be kept on. Renault stopped production in February 2022.The company that made Moskvitch automobiles went bust in 2006. It had stopped making vehicles in 2001. By then it was seen as outdated and unfashionable.Renault started making vehicles in Russia in 2005. It still owns a 68% stake in Avtovaz. Russia says it will take this and give it to the state automotive institute NAMI. The government said it will offer Renault the chance to buy back its stake in Avtovaz by 2028. Avtovaz will service Renault cars. There is no word on whether Renault will be offered something similar on its car factory.Renault said selling its stake to NAMI and all its shares in Renault Russia is responsible. Renault said that if circumstances change it would like to go back to Russia. The company said there is a non cash write down of the USD 2.9 billion in relation to the impact of ending operations in Russia.

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