French automaker Renault would need to reinvest 112.5 billion rubles ($1.29 billion) to regain its former Russian assets, the head of Avtovaz, Russia’s top car manufacturer said.
Renault, which had the largest exposure to the Russian market among Western carmakers, suspended operations at its Moscow plant in March 2022 following Russia’s invasion of Ukraine.
Renault’s Exit and Possible Return
Two months later, the company sold its majority stake in Avtovaz for a symbolic 1 ruble, with a six-year buyback option, as part of a broader Western corporate withdrawal from Russia.
Speculation about a potential return has grown amid efforts by U.S. President Donald Trump and Russian President Vladimir Putin to improve bilateral ties. Renault CEO Luca de Meo recently said that repurchasing Avtovaz was an “option.”
The Cost of Reentry
Avtovaz CEO Maxim Sokolov told reporters that Renault’s buyback option requires reimbursement for state and corporate investments made during its absence, according to Interfax.
He detailed that Avtovaz has invested 67.5 billion rubles ($779 million) between 2023 and 2024 and plans to invest another 45 billion rubles ($520 million) in 2025, bringing the total Renault would need to pay to $1.29 billion.
“The entry price will not exactly equal the exit price of 1 ruble,” Sokolov remarked.
Renault previously recorded a $2.29 billion write-down after suspending its Russian operations.
Post-Exit Ownership
After Renault’s departure, its 68% stake in Avtovaz was acquired by the Central Scientific Research Automobile and Automotive Engine Institute (NAMI), a subsidiary of Russia’s Ministry of Trade and Industry. Meanwhile, its Moscow plant was sold to the city government.
