French automaker Renault would need to reinvest 112.5 billion rubles ($1.29 billion) to regain its previous Russian assets, the head of Russias top producer, Avtovaz, stated Monday.Renault, which had the largest exposure to the Russian market amongst Western carmakers, suspended operations at its Moscow plant in March 2022 following Russias intrusion of Ukraine.Two months later on, the company sold its bulk stake in Avtovaz for a symbolic 1 ruble, with a six-year buyback alternative, as part of a wider Western corporate exodus from Russia.Speculation about a potential return has actually magnified amid efforts by United States President Donald Trump and Russian President Vladimir Putin to enhance bilateral ties.
Renault CEO Luca de Meo stated last week that repurchasing Avtovaz was an option.Avtovaz CEO Maxim Sokolov informed reporters that Renaults buyback choice needs the business to reimburse state and business financial investments made in its absence, according to Interfax.He said Avtovaz has invested 67.5 billion rubles ($779 million) in between 2023 and 2024 and prepares to invest an extra 45 billion rubles ($520 million) in 2025 bringing the total quantity Renault would need to pay to $1.29 billion.The entry cost will not exactly equivalent the exit cost of 1 ruble, Sokolov said.Renault previously tape-recorded a $2.29 billion write-down after suspending its Russian operations.Following its exit, Renaults 68% stake in Avtovaz was acquired by the Central Scientific Research Automobile and Automotive Engine Institute (NAMI), a subsidiary of Russias Ministry of Trade and Industry, while its Moscow plant was sold to the city.Moscow Mayor Sergei Sobyanin recently dismissed the idea of Renaults return, stating the automaker was unlikely to get anything.