Renault's Moscow plant nationalized

Following pressure over its prolonged presence in Russia, Renault has stated that it will sell its majority holding in Avtovaz. The French automaker announced that it will sell its 68 percent stake in

Renault Russia to a Russian science institute,

while its shares in Renault Russia will be donated to the city of Moscow. Renault's Russian assets, according to Moscow, have now become state property.

It is the first time since the invasion of Ukraine that Russia has nationalised a significant international company. "Agreements on the transfer of Renault Group Russian assets to the Russian Federation and the government of Moscow have been signed," Russia's industry and trade ministry announced. The deal's financial terms were not disclosed, although Russian Industry and Trade Minister Denis Manturov stated in April that Renault wanted to sell its Russian holdings for "one symbolic rouble."

Renault Group's board of directors

approved arrangements to sell Renault Russia to the Moscow city body, as well as its 67.69 percent ownership in Avtovaz to the

Russian Central Research and Development Automobile and Engine Institute,

according to a statement released on Monday. Renault's Moscow plant, Avtoframos, which produces Renault and Nissan vehicles, was also included in the purchase.

The plant's production will now recommence under the Soviet-era Moskvich name, according to Moscow Mayor Sergei Sobyanin.

Renault boss Luca de Meo

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."