The Russian government is likely to provide additional aid worth about 12bn rubles to AvtoVAZ, Kommersant business daily reported on Friday, citing a government official.
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A final decision on the issue is expected to be made at a meeting of the government’s anti-crisis commission scheduled for 6 October, the official said.
AvtoVAZ requires the funds to make social payments to 27,600 employees it plans to lay off by the end of this year.
The carmaker is not able to independently attract the amount, as it currently has about 40bn rubles of debt and requires another 42bn rubles for its investment programme.
The government is considering the possibility of AvtoVAZ converting debt into shares through deals with state-controlled banks, economic development minister Elvira Nabiullina said in late September. Funds for AvtoVAZ’ investment program could be provided by state-owned Vnesheconombank (VEB), which could then become the carmaker’s shareholder, an AvtoVAZ executive told the daily.
AvtoVAZ already received 25bn rubles from the government earlier this year.
