The French manufacturer says the closing of the transactions are not subject to any conditions, and that all required approvals have been met. As reported by GoAutoNews Premium previously, the agreement provides for an option for Renault Group to buy back its interest in AvtoVAZ, exercisable at certain times during the next six years.

“Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group’s performance and our ability to return to the country in the future, in a different context,” said Renault Group CEO Luca de Meo.

“I am confident in the Renault Group’s ability to further accelerate its transformation and exceed its mid-term targets.”

According to a statement issued by the Renault Group on March 23, a non-cash adjustment charge amounting to the accounting value of the consolidated intangible assets, property, plant and equipment and goodwill of the Group in Russia should be recorded in the 2022 first half results.

As of December 31, 2021, this value amounted to €2.2 billion ($A3.3 billion). Russian operations will consequently be deconsolidated in Renault Group consolidated financial statements for the six-month period ended on June 30, 2022 and will be accounted for as discontinued activities in application of IFRS 5 requirements.

In March, Renault Group, which is 15 per cent owned by the French state, said it would suspend operations in Russia amid mounting pressure over its continued presence in the country since the invasion of Ukraine in February.

Companies including Ford, Toyota and Volkswagen were far quicker in halting production in the country, joining over 750 companies who withdrew from Russia leaving behind assets worth billions of dollars.

Russian companies have been purchasing Western companies at bargain prices since its invasion of Ukraine in February.

Automotive News Europe says Renault is the “most exposed” Western vehicle manufacturer in the Russian market. Renault builds three models based on the Dacia Duster platform at its Moscow plant, while AvtoVAZ builds Ladas, Russia’s top-selling brand with approximately 22 per cent of the market.

In 2021, Renault-owned Lada sold more than 385,000 vehicles globally, accounting for a 14.3 per cent share of the Renault Group’s total volume.

The Renault Group first acquired a 25 per cent share in AvtoVAZ back in 2008 at a cost of more than $US1 billion ($A1.41b) and gradually increased its stake, consolidating the company into its balance sheet in 2017.

It has invested significantly in modernising both the production plant, in the city of Togliatti, and in updating Lada’s antiquated model range.

By Matt Brogan