Russia’s Ministry of Industry and Trade has announced that Russian assets of the French carmaker Renault are becoming state-owned, Russian news agencies reported.
AvtoVAZ will now carry out service maintenance of Renault cars in Russia, and will also continue to produce the entire Lada model range and cars under the historic Moskvich brand in its plants. Moscow Mayor Sergei Sobyanin announced this on his personal blog.
The foreign owner has decided to close the Renault plant in Moscow, which is his right, but we cannot allow thousands of workers to lose their jobs. the historic Moskvich brand, the mayor wrote.
He added that they would try to keep most of the staff directly employed at the plant and related workers.
The Russian assets of the French car company Renault have become state property, and announced the Ministry of Industry and Trade of Russia. Renault’s plant in Moscow passes into the balance of the Moscow government. 67.69% of the shares of AvtoVAZ are given to the Automobile Research Institute, and the rest of the assets remain in Rostech.
“Nationalization of Renault’s share will ensure the management of AvtoVAZ and the company’s ability to operate under sanctions. This will preserve key competencies, the production cycle and jobs,” said Industry and Trade Minister Denis Manturov.
