(Bloomberg) -- Renault may transfer its majority stake in Russian carmaker AvtoVaz to a state-run automobile research institute in what is essentially a nationalization of the unit by government.
NAMI, which reports to Russia's industry ministry, would buy the stake for a ruble ($0.01) but would give Renault a five or six-year option to buy it back, the industry ministry said in an email, confirming a report by Interfax.
In addition, Renault is expected to transfer its shares in its Avtoframos car plant in Moscow to the city government, the ministry said.
A spokesman for Renault declined to comment in the report.
Renault halted operations at the Moscow plant in March and has been considering a transfer of ownership in AvtoVaz to a local investor as a way to exit the country. Chief Financial Officer Thierry Pieton said last week that talks with Russia over AvtoVaz were progressing.
The French carmaker is the most exposed company among vehicle manufacturers to Russia through its 68% stake in Lada-maker AvtoVaz, the country's biggest automaker. Renault valued its operations in Russia -- its second biggest market -- at 2.2 billion euros ($2.4 billion), including goodwill, at the end of last year.
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