Renault selling Lada for $0.02

Renault is set to sell off its stake in Russian car maker Lada, according to a new report from Automotive News.

The move follows Russia's invasion of Ukraine, which wreaked havoc on the French car maker's supply chains and sent stocks tumbling.

Renault’s 68 per cent share in Lada’s parent company AvtoVAZ will reportedly be offloaded for just ₽1 (1 ruble) – equal to approximately $AU0.02.

The branding, factories, and business infrastructure will be acquired by the state-run Central Scientific Research Automobile and Automotive Engines Institute based in Moscow.

While the car makers and French government are yet to comment on the deal, Russian officials indicate it is set to be finalised.

Last year Renault built approximalty 20 percent of all new cars sold in Russia, across both its Renault and Lada marques.

However, it halted all production in the country following the break out of war earlier this year.

Renault stocks collapsed by nearly a quarter in the following days, with market value falling from $AU11.1 billion to $AU8.9 billion.

Lada currently builds two sedans – the Granata and Vesta (shown below) – alongside Xray, Largus, and Niva SUVs.

It's so far unclear how the line-up will be affected by Lada's separation with one of Europe's largest car makers.

Lada was founded in 1973, and underwent various restructures following the collapse of the Soviet Union.

Renault bought into the company in 2008, and increased its stake to 68 per cent over the next five years.

The marque has attempted to break into the Australia market on several occasions, with the last Lada sold locally in 1998.

Models sold locally include the Niva (1989-1998), Cevaro (1990-1996), Volante (1994-1995), Samara (1988-1990), Sable (1994-1995), and Bizivan (1989-1991).

A retuned performance variant of the Samara was also briefly offered by Peter Brock's Special Vehicles company in 1989.