The first major nationalization of a Western company's assets since Russia's invasion of Ukraine was announced by the company Monday.
The Russian assets of the French company were sold.
The city of Moscow and the majority of Avtovaz's shares will be transferred to a government-backed science institute.
All approvals have been acquired and there are no conditions on the sale.
It is the first major nationalization of a Western company's Russian assets since Moscow invaded Ukraine in February.
Moscow's mayor, Sergei Sobyanin, said that the city would be listed as the asset and resume production under the Moskvitch brand.
Luca de Meo said the decision was difficult but necessary and that it was a responsible choice.
Forbes did not get a response from the two companies.
The deal's value. The value of one ruble was reported to be the financial details of the sale. In late March, the company said it would write down the value of its Russian businesses by 2.2 billion euro.
It marks a major shift in the auto industry for Russia and abroad. One of the most exposed Western carmakers to the Russian market is Avtovaz, which is Russia's largest carmaker. It is one of many large Western companies to write down billions of Russian assets after suspending, shifting or stopping operations following Moscow's invasion of Ukraine. Russian President Putin has threatened to nationalize the assets of companies that leave Russia.
Russia plans to take over assets of companies that pull out.
Shell faces a $5 billion hit for leaving Russia.
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