GM-AvtoVAZ is set to restart production on Tuesday (21 February) following a shutdown that lasted more than a week after the company's main shareholders reached an agreement at an emergency meeting on Monday, the Moscow Times reported.

Production at the Tolyatti-based joint venture - set up by General Motors and AvtoVAZ in 2002 - had been halted over a dispute about the price of parts supplied by AvtoVAZ to the venture, which assembles Chevrolet Vivas and Nivas.

The paper noted that the dispute came after weeks of tense relations between the two partners, beginning in late December when the state effectively took charge of the Lada maker.

In the dispute, AvtoVAZ had argued it was losing money on price of parts. A GM Europe spokesman told the Moscow Times the venture was paying the market rate.

The GM-AvtoVAZ venture and its parent companies reportedly declined to disclose what terms had been agreed on, saying only that the companies remained in negotiations.

"There's still a number of sensitive issues on the table, but I am hoping we'll get through them," Warren Browne, executive director for GM in Russia and the CIS, told the paper, adding that the situation remains delicate.

Alexander Zhukov, an automotive analyst with brokerage Metropol, told the Moscow Times that AvtoVAZ probably managed to raise prices by 15 to 20%.

It had earlier complained it was selling the parts at around 15% below market price.