Directors of Ulyanovsk Automobile Plant (UAZ) have recommended paying no dividends for 2009, the company said in a statement on Tuesday.

The board’s recommendation will be considered at an annual general meeting (AGM) of the company’s shareholders on 20 May, according to Prime-Tass. The company didn’t pay dividends for 2007 or 2008.

UAZ posted a net loss of RUB470.142m ($US16.2m) in January–June 2009 compared with a net profit of RUB747.948m a year earlier, as calculated under Russian Accounting Standards (RAS). No information was available on the company’s financial results for July–December 2009.

UAZ is a subsidiary of Russian automaker Sollers, known earlier as Severstal Auto - which has a joint venture with Fiat.

Established in 2002, Sollers controls UAZ, the Zavolzhsky Engine Plant (ZMZ), Sollers-Yelabuga, and Sollers Naberezhniye Chelny.

Sollers and Fiat in February signed a memorandum of understanding to set up a joint venture in the constituent republic of Tatarstan. The venture is expected to produce nine car models, including six models based on a Fiat–Chrysler platform. Its capacity is expected to amount to 500,000 cars annually.

Sollers has two production sites in Tatarstan, in the cities of Naberezhnye Chelny and Yelabuga. It produces Fiat Albea and Fiat Doblo Panorama cars in Naberezhnye Chelny and Fiat Ducato light commercial vehicles in Yelabuga.