Official: Govt mulls feasibility of extra support to GAZ Group

MOSCOW, Apr 18 (PRIME) -- Russian Deputy Prime Minister Dmitry Kozak has received automaker GAZ Group’s request for additional state support and is now considering whether it is necessary, Kozak’s representative told reporters on Thursday.

“We are confirming the company’s request, feasibility of additional support is being studied, but no decisions have been made,” he said.

Kommersant business daily reported that GAZ Group had applied for a 29.5 billion ruble additional state support. The company said in a letter to Kozak that it sees the risks of its production falling 40% in the second half of the year because of sanctions.

Reuters reported on Wednesday that businessman Oleg Deripaska could quit a controlling stake in GAZ Group in order to release the company from U.S. sanctions. Daimler and some others have stopped dealing with GAZ Group because of the sanctions, he said.

(63.9450 rubles – U.S. $1)

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