The French equipment manufacturer Valeo announced on Friday the sale to the local company NPK Avtoribor of its production of transmission systems in Russia, almost a year and a half after the outbreak of the war in Ukraine. “As part of its decision to withdraw from its production activities in Russia,” Valeo has signed an “agreement with the Russian company NPK Avtoribor for the sale of all production assets of its transmission systems activity in Russia,” according to a press release. group release.
Valeo generated less than 1% of its sales in Russia before the outbreak of the war in Ukraine, which led most European manufacturers to leave the country. If the sale has no financial impact because “it is carried out without capital gain or loss”, Valeo had written off the Russian assets in 2022 “for a total amount of 43 million euros”. The operation “will allow the 158 Russian employees in this activity to keep their jobs,” says Valeo, which reserves a ten-year purchase option, which can be activated after the sixth year.
Renault sold Lada
Since the Russian offensive in Ukraine in February 2022, many European companies have announced that they are leaving the country, often handing over their activities to local companies or to the state. Notably, Renault sold its majority stake in auto giant AvtoVAZ (Lada brand) to the Russian state, resulting in a €2.3 billion loss recorded in the first half of 2022.
Before the Russian invasion, more than 500 French companies (including 35 CAC 40 groups) were present in Russia, according to the Ministry of Economy.
Source: BFM TV
