AvtoVAZ and Bosch have inked a protocol of technical co-operation up to 2017.
The agreement means AvtoVAZ will develop new components in the environmental and safety fields and co-operate in areas such as anti-lock and stability control systems for Lada models.
Engine management systems will also be part of the deal, as will work on possible development of electric and hybrid power systems for the Lada and start-stop options.
Localisation of parts in Russia is equally part of the contract.