Avtovaz has signed a Special Investment Contract (SPIC) with Russia's Ministry of Industry and Trade, for the development of Alliance brands Lada, Nissan, Datsun, Renault and Mitsubishi, as well as to modernise its production facilities in Russia.

With the agreement, Avtovaz will serve as the main investor for the Alliance partners: Lada Izhevsk, CJSC Renault Russia, Nissan Motor Manufacturing Russia and Mitsubishi Motors Russia. The agreement was also signed by the Governments of Samara Region, Udmurt Republic, Moscow, Saint Petersburg and Kaluga Region.

In the ten-year contract PJSC Avtovaz will invest more than RUB70bn (US$1.05bn), create 2,300 jobs, and together with its Alliance partners, expand localisation of materials, parts and components, introduce new technologies, develop R&D activities in Russia and increase export volumes.

"In [the] coming years as Avtovaz Group revamps its Lada product range, SPIC will be providing the long-term visibility which is critical for our activities and will also contribute to the development of the whole Russian auto components industry," said Avtovaz president, Yves Caracatzanis.

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