Renault Takes €2.2B Russia Hit, Confirms AVTOVAZ Stake
Renault Group has announced a significant non-cash adjustment charge of €2,195 million in its first half 2022 results, primarily due to the devaluation of its assets in Russia. The group will provide an update on its financial outlook and strategy later this year.
The charge reflects the reduced value of Renault's intangible and tangible assets, as well as goodwill, in Russia. This follows the group's decision to deconsolidate its Russian activities by the end of June 2022, treating them as discontinued operations under IFRS 5.
CEO Luca de Meo has confirmed that Renault will maintain a stake in AVTOVAZ, subject to meeting contractual, financial, and regulatory conditions within the next six years. The completion of these transactions is not subject to any further conditions, and all necessary authorizations have been secured. Renault Group has also reaffirmed its financial outlook as announced on March 23, 2022.
Despite the challenges posed by the current situation in Russia, Renault Group remains confident in its ability to accelerate its transformation and surpass its medium-term objectives. The group will provide further details on its strategy and financial outlook at a Capital Market Day in the fall of 2022.
