Renault sells Russia stake for one rouble

STORY: Renault is to transfer its stake in Russian carmaker Avtovaz for a symbolic one rouble.

The 68% stake will go to a local auto research institute.

Russia’s trade ministry also said Wednesday (April 27) that the Renault plant in Moscow would be transferred to the city’s government.

There was no comment on the news from the French firm.

But it's all the latest sign of Russian entities snapping up bargains as western companies flee.

That as Moscow draws up legislation that could see control of foreign companies handed to local management.

Renault was the Western carmaker most exposed to the Russian market.

Last month it said it would suspend its operations in the country.

The trade ministry says the firm will retain a right to buy back its stake in Avtovaz, which owns the Lada brand, within five to six years.

Analysts said the news was positive for Renault on balance, as it brought some kind of resolution.

After an early dip, shares in the firm were up over 1.5% by lunchtime.

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