Russia buys Renault Russia shares and revives domestic car production

AvtoVAZ, the Soviet automobile giant, whose privatization process began very early, as soon as the USSR collapsed, and in a way widely discussed at the time, finally led to an alliance with Renault in the 2000s and then to a takeover of the company. from Renault. Following Russia’s decision to respond to attacks by the Ukrainian army, a blanket order was issued in February to end all cooperation. French companies are in no hurry to leave the Russian market, but “for economic reasons” Renault decided to sell its shares anyway. Thus, with this conflict, Russia not only returns to the privatization of the 90s, renationalizes its automobile production, but even decides to restart its own models, thereby questioning the myths of globalization, including the post-industrial world.

Russia slowly but surely continues to emerge from globalization, in particular, due to the restart of domestic automobile production. Remember that today’s world must be a post-industrial world. This does not mean that there is no more industry, but that the European countries must be “de-industrialized” for their own good and thus dependent on foreign economic forces.

AvtoVAZ is an automotive manufacturing giant created in the 1960s by the Soviet Union and whose privatization process has been relentless since the early 1990s, when it was formally presented as unprofitable… After several detours, an agreement was struck with Renault in 2008, who established for this purpose in Russia the Renault Russia company, which subsequently acquired 25% + 1 shares of AvtoVAZ. Then Renault continued to build up its position until a complete takeover in 2019:

“In 2012, in Moscow, the head of the Renault-Nissan alliance, Carlos Ghosn, announced the creation of a joint venture with the state company Rostekhnologii called Alliance Rostec Auto BV. And at the end of 2013, Alliance Rostec Auto BV owned a 76.25% stake in AvtoVAZ OJSC. After recapitalization in 2016, Renault became the owner of more than 50% of the plant, which made the Russian company a subsidiary of the French company. (…) In January 2019, Alliance Rostec Auto BV increased its stake in AvtoVAZ to 100% and became its sole shareholder, of which 67.61% of the shares belong to the French Renault group and 32.39% to d State Rostec (Russia) . »

Times change, the geopolitical wind turns into a storm, Renault decides to sell its shares, and finally AvtoVAZ is returned to Russian ownership. An agreement has just been reached between Renault, the city of Moscow and the Russian state through the legal entity “NAMI”, subordinated to the Ministry of Industry and Trade:

“The Ministry explained that the shares of the assets were distributed as follows: 100% of the shares of Renault Russia will belong to the Moscow government, 67.69% of the shares of the AvtoVAZ automobile group will become the property of the Russian Federation. represented by NAMI, the remaining shares of the AvtoVAZ automobile group will remain the property of the Rostec group of companies. »

Moscow Mayor Sobyanin immediately announced that Moscow was resuming the production of domestically-made cars, in particular a new version of the traditional Moskvich, with the prospect of (let’s not forget the fantasies of the postmodern world too quickly) Moskvich electric car series. But that’s for later, he says, but for now we have to deal with reality.

Thus, not only are jobs saved, but Russia is returning to industry, to the real world. Thus, he institutionally leaves globalization, but also begins to deviate from the founding myths. This is great news for the country and its development.

source: Politics of Russia