RUSSIA/FRANCE: Renault 'to sign AvtoVAZ rescue deal' tomorrow

By just-auto.com editorial team | 26 November 2009

A rescue deal for troubled Russian carmaker AvtoVAZ will be signed by its shareholders, including Renault, at a meeting in Paris on Friday to coincide with Russian prime minister Vladimir Putin's visit to the city.

Other shareholders in the rescue deal are the Moscow-based bank Troika Dialog and state-controlled investment group Russian Technologies.

Christian Esteve, leader of Renault's Eurasia management committee, will sign the agreement on behalf of Renault which has a 25% stake in the Lada carmaker which has debts of RUB60bn (US$2.08bn).

The agreement has taken several months to thrash out, according to Putin's office. Renault's role is expected to see it share more of its technology with AvtoVAZ or start building its own cars at the Russian plant.