RUSSIA: AvtoVAZ rescue plan expected soon
A Russian government commission is expected to draft a rescue plan for struggling AvtoVAZ within two weeks, company president Boris Alyoshin said on Tuesday.
AvtoVAZ has requested 26bn rubles from the government, he told Prime-Tass, adding that the government might either invest in an offering of AvtoVAZ shares or disburse funds to state-owned industrial conglomerate Rostekhnologii, which would then provide financial support to AvtoVAZ.
AvtoVAZ' total debt is currently 44bn rubles, Alyoshin said.
In 2008, AvtoVAZ posted a net loss of 6.2bn rubles and an operating profit of 150m, Alyoshin said. He attributed the net loss to higher prices for raw materials.