Russia has nationalised the Moscow factory of French carmaker Renault. Moscow city leadership has announced that cars under the Moskvich brand reminiscent of the Soviet Union, BBC reports.
Renault Group stated on Monday, May 16, that its board of directors had given approval to agreements to sell Renault Russia to a Moscow city entity, as well as its 67.69% stake in Avtovaz to the Russian Central Research and Development Automobile and Engine Institute (Nami). The set of agreements also concerned Renault’s Moscow plant, Avtoframos, which produces Renault and Nissan models.
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Sergei Sobyanin, the mayor of Moscow, announced that production at the plant would now resume under the Soviet Union-era Moskvich brand. Moskvich is remembered in countries formerly occupied by the Soviet Union as an automobile of poor quality and low safety standards.
BBC reports that the agreement, which, according to Renault, would cost the company an estimated EUR 2.2billion, contains a possibility the car-making group to buy back its interest in Avtovaz for six years. Renault had 45,000 employees in Russia before the Kremlin decided to attack Ukraine again on February 24 triggering an exodus of businesses from Russia.
Renault’s Moscow factory nationalised to build Moskviches
