UPDATE: Source: State to provide funding to AvtoVAZ in various ways

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MOSCOW, Feb 18 (PRIME) -- Top Russian car producer AvtoVAZ will receive state funding and ways of allocating the funds are being discussed, a high official told reporters on Thursday.

“Support to AvtoVAZ will be provided in different ways,” he said.

The net loss of AvtoVAZ nearly tripled to 73.851 billion rubles in 2015.

In January, Prime Minister Dmitry Medvedev signed a ruling to provide state support of about 50 billion rubles to the Russian car industry in 2016.

Industry and Trade Minister Denis Manturov said that AvtoVAZ has not officially applied for additional state support yet.

“There were no official statements made by AvtoVAZ or its founders, no one applied for additional measures of state support, which are mentioned in the media,” he said.

Alliance Rostec Auto BV, a joint venture between Renault-Nissan alliance and Russia’s state-owned industrial corporation Rostec, holds 74.5% in AvtoVAZ. The stake of Renault-Nissan in the joint venture stands at 67.13% (Renault owns 50.1% and Nissan 17.03%), while Rostec holds a 32.8% stake.

No car maker has announced plans to close production in Russia because of the difficult economic conditions, Manturov also said.

(77.8503 rubles – U.S. $1)

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