CORRECT&UPDATE: Moscow, Kamaz to invest 5 bln rbl in Moskvich

(Corrects headline, paragraph 1 to say that Kamaz will also partake in investment in Moskvich plant, adds paragraph 2, details in paragraph 3)

MOSCOW, Aug 1 (PRIME) -- The government of Moscow and Russia’s largest truck producer Kamaz have signed an agreement to invest 5 billion rubles in the Moskvich car plant in proportion to their stakes in the plant, the government said in a statement on Monday.

“The parties have coordinated that 60 days after the signing of the agreement … (the parties) will ensure financing of the company in the amount of 5 billion rubles in the shares equal to participation of each shareholder in the company’s shareholder equity,” the statement read.

Kamaz is to buy 50% of the plant’s shares no later than on October 1. Moskvich will use the money to localize production of component parts and adapt its production capacities, the government added.

Car producer Renault Group left Russia, and transferred its stake in Russia’s largest car producer AvtoVAZ to the NAMI State Research Center and the facility Renault Russia to the city of Moscow, which renamed the plant into Moskvich.

(61.3101 rubles – U.S. $1)

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