If it wants to return to the Russian market and take back its old businesses, Renault Group will have to spend up to 1.3 billion USD to compensate for the investments that AvtoVAZ made during the time the French car company left - RT reported, citing CEO Maxim Sokolov's announcement on February 25.
In 2022, Renault left Russia amid international pressure after the Ukraine conflict escalated, reselling a 68% stake in AvtoVAZ for just 1 ruble, but with the option to return within 6 years.
However, Mr. Sokolov emphasized that, in order to re-export, Renault will have to repay the investments that AvtoVAZ has made to maintain and develop the enterprise. This is estimated at 112 billion rubles ($1.3 billion) in 2023-2025, higher than Renault's average investment in early 2020.
This investment cannot be ignored. It will definitely have to be compensated if Renault returns, Sokolov said.
After Renault resold all its shares, the company's assets were transferred to Russian state ownership. Just a few months later, in November 2022, the Renault factory in Moscow started producing the Moscow Moscow Moscow car brand - a car line that was once a symbol of the Soviet Union.
Renault once considered Russia its second largest market, but its decision to withdraw caused the company to suffer a loss of more than 2 billion USD. Now, if he wants to come back, this number could be much higher.
Will Renault accept this price to return, or will it make way for other names? The game in the Russian auto market has changed and Renault will probably have to think very carefully before making a decision.
