Home LifeStyle Renault Group has decided the fate of the Russian divisions

Renault Group has decided the fate of the Russian divisions

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The Board of Directors of Renault Group unanimously approved the signing of agreements on the transfer of 100% of the shares held by Renault Group in the Renault Russia branch to Moscow City Hall and 67.69% of the capital of AVTOVAZ to NAMI (Russian Central Research and Development Institute) of cars and engines).

The execution of these transactions is not subject to any conditions, all the necessary authorizations have already been obtained.

The agreement provides for an option for Renault Group to purchase its stake in AVTOVAZ, which may be exercised for certain periods over the next six years.

“Today we have made a difficult but necessary decision, in full responsibility for the 45,000 employees we have in Russia, in the desire to maintain the Group’s performance and the possibility of returning to this country in the future, in a different context. . I am confident in Renault Group’s ability to accelerate its transformation and exceed its medium-term goals, “said Luca de Meo, CEO of Renault Group.

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As announced on March 23, a non-cash adjustment fee corresponding to the carrying amount of goodwill and the Group’s consolidated tangible and intangible assets in Russia will be included in the results for the first half of 2022. As of December 31, 2021, this amount amounts to 2.195 billion euros. Activities in Russia will no longer be consolidated in the half-yearly accounts of the Renault Group to be reported on June 30, 2022 and will be treated as discontinued operations under IFRS 5.

Renault Group reconfirms its financial performance targets as announced on March 23, 2022. Ahead of the medium-term goals of the Renaulution plan, Renault Group will present in the fall of 2022 at a Capital Market Day event , the up – to – date state of its financial outlook and strategy for positioning itself as a benchmark in the automotive, sustainable, competitive and technology – oriented world.

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