Renault's yeeting out of Russia but in a business-safe way and other Western companies...take note.
👉 Background: Renault is the French carmaker that was founded back in 1899. It owns a 43% stake in Nissan...and a 68% stake in Russia's biggest carmaker, AvtoVAZ.
👉 What happened: Renault's ownership in AvtoVAZ is worth $3.3 billion. But, it's expected to sell this stake to the Russian government for just 1 rouble (that's 2 Aussie cents, FYI). But, it does have the option to buy back its stake within 5-6 years.
👉 What else: With rising pressure on companies to exit Russia after its invasion of the Ukraine... Renault's just written the blueprint for how to do it.
💡 There are some Western companies still operating in Russia because they don't know how to leave in a 'business-safe' way.
💡 Renault has some seriously deep roots in Russia. It's invested billions into the country, had 30% of the market share there last year and employs around 40,000 people there.
💡 So, the carmaker's bold move has made it a leader for other companies looking to exit.
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