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Chinese automaker can buy out Renault's share in Avtovaz, source says

Renault holds 68% in Lada Auto Holding, a joint venture with Rostec, which owns 100% of Avtovaz

MOSCOW, April 22. /TASS/. The share of Renault in Avtovaz carmaker can be bought out by one of the Chinese automakers, a source in government agencies told TASS.

"One of the Chinese automakers is being considered," he said.

Renault holds 68% in Lada Auto Holding, a joint venture with Rostec, which owns 100% of Avtovaz.

Rostec and Avtovaz declined to comment. The press service of Renault’s office in Russia recommended TASS contacting the company's head office in France. The agency sent a request to the press service of Russia’s Industry and Trade Ministry.

In late March, Renault announced that it was suspending the operation of its Moscow plant and planned to explore possible options for its participation in the work of AvtoVAZ.

Bloomberg reported that the company is considering an option to transfer its stake in Avtovaz to a Russian investor. According to the agency’s sources, Renault will not be able to transfer its share to the co-owner of AvtoVAZ, the state corporation Rostec, since the latter is under Western sanctions.

On Friday, Gazeta.ru reported that Renault is preparing to sell Avtovaz and intends to transfer most of its foreign management from Tolyatti to Moscow in May. According to the publication, Rostec or the agencies of the Industry and Trade Ministry may become the owner of the stake.

Avtovaz produces cars and components for the Lada and Renault brands. The production facilities of Avtovaz are located in Togliatti (JSC Avtovaz, JSC Lada Zapad Togliatti), as well as in Izhevsk (LLC Lada Izhevsk).