RUSSIA: AvtoVAZ plan approval likely soon - minister
Russia's economic development ministry may approve AvtoVAZ’s business plan in the coming days, deputy minister Andrei Klepach said at a forum on Tuesday.
Klepach added that, in his personal opinion, the carmaker’s programme should be supported.
Earlier this month, AvtoVAZ’s board approved a business plan under which the carmaker’s annual output would exceed 1m units by 2020, and consist mainly of Lada brand vehicles. Investments in AvtoVAZ’s development could total around EUR3bn before 2020.
AvtoVAZ will receive government funds only if its business plan is approved by both investors and three government bodies – the industry and trade ministry, the economic development ministry, and the finance ministry, Klepach told Prime-Tass.
In addition, the government has already transferred RUB28bn to industrial conglomerate Rostekhnologii, one of AvtoVAZ’ shareholders, which the carmaker will receive if the business plan is approved, Klepach added.
In 2009, AvtoVAZ output fell 63% to 294,737 cars, the company said earlier.