Avtovaz’s annual financial report suggests nearly half of its profit for 2012 is stuck in banks in Cyprus.
Avtovaz has RUB641m (US$20.5m) in Cypriot banks at present, but some of this may be lost due to the financial crisis that hit Cyprus in 2012, reported Interfax, citing the company’s financial report. This amount represents around 40% of the group’s operating profit for 2012, which excludes the depreciation of interest-free loans. Avtovaz said the money at risk belonged to Lada International, the company’s official exporter for its Lada range.
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“Due to the banking crisis in Cyprus, there’s a risk that a portion of those funds will not be reimbursed,” said Avtovaz. The company added that the management could not assess potential losses at present.
Avtovaz has reported a net profit of RUB29.18bn for 2012, 4.4 times greater than its profit for the previous year. However, most of the profit was attributed to the depreciation of interest-free loans amounting to RUB27.6bn.
