Renault to offload its stake in Russian AvtoVAZ for 1 ruble

Renault is set to transfer its 68% stake in Russia’s biggest automaker AvtoVAZ to an auto research institute for one symbolic rouble.

The report comes as an example of local institutions snapping up bargains as Western companies flee from Russia due to sanctions on the country that emerged after the military conflict between Russia and Ukraine intensified

The Russian trade ministry also said Renault’s factory in Moscow would be passed to the city’s government.

Renault hasn’t commented on the news which was first reported by Trade Minister Denis Manturov.

The ministry added that Renault would have the right to buy back its stake in AvtoVAZ within 5 to 6 years from NAMI.

Renault had said last month it would suspend operations at its Moscow plant.