AvtoVAZ has been forced to suspend production because of a row with its suppliers, local press reported today.


The business daily Kommersant said suppliers have refused to ship components to the carmaker after a change in the way they would be paid.


AvtoVAZ said that, from the beginning of February, 70% of its supplies would be paid for with its own bills of exchange.


The paper quoted AvtoVAZ president Boris Alyoshin as saying that seven suppliers had suspended their shipments but refused to elaborate.


AvtoVAZ is now in talks with suppliers but Alyoshin warned the carmaker would be unable to resume production until the dispute was resolved.