AvtoVAZ and the Cherepovets Smelter, a unit of Russian steelmaker Severstal, have concluded a cooperation agreement on issues concerning 'price formation, settlements, and quality of production', AvtoVAZ has said in a statement.

The Cherepovets Smelter supplies a wide range of rolled metal products to AvtoVAZ that are used in the production of cars.

AvtoVAZ said that cooperation with Severstal would help reduce expenditures on its supply chain and ensure supplies of quality products to the carmaker.