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Renault To Sell Renault Russia, Controlling Interest In AVTOVAZ; Backs Outlook

French automaker Groupe Renault (RNSDY.PK,RNSDF.PK,RNT.L) announced Monday its agreements to sell Renault Russia to Moscow City entity and its 67.69% interest in AVTOVAZ to NAMI (the Central Research and Development Automobile and Engine Institute).

The closing of the transactions is not subject to any conditions, and all required approvals have been obtained.

The company said the agreement provides for an option to buy back its interest in AVTOVAZ, exercisable at certain times during the next 6 years.

Russian operations will consequently be deconsolidated in Renault consolidated financial statements for the six-month period ended on June 30, 2022 and will be accounted for as discontinued activities.

Further, Renault confirmed its financial outlook as announced on March 23.

As announced earlier, the company will record a non-cash adjustment charge related to Russia in the 2022 first half results. As of December 31, 2021, this value amounted to 2.20 billion euros.

Luca de Meo, CEO Renault Group, said, "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. I am confident in the Renault Group's ability to further accelerate its transformation and exceed its mid-term targets."

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