Avtovaz chooses former Russian transport minister as CEO

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The French brand sold Avtovaz for the symbolic sum of one ruble with the option to take it back in the next six years

After Renault gave up its majority stake in Avtovaz, Russia’s largest automaker, the board of directors elected former Transport Minister Maxim Sokolov as chairman and CEO.

In the middle of this month, the French manufacturer sold its position within Avtovaz, making the Russian market the second largest volume for the group. The symbolic price was only one ruble, with the possibility of getting it back in the next six years.

After the Russian invasion of Ukraine, Renault’s share price plunged 35% as it is the western manufacturer most exposed to the region, where Lada – Avtovaz’s main brand – has three cars in the top 10.

in April,
Sales of Lada fell by 78%. The manufacturer has paused production of its vehicles until May 27 due to a lack of components and reduced demand.

To date, some 400 companies have ceased operations in Russia, leaving assets worth billions of euros. The Russian government even declared that it would nationalize the strategic companies and accused them of terrorism.

Source: La Verdad

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