MOSCOW, June 4 (RIA Novosti) - Russia's prime minister has instructed the government to provide a 25 billion ruble ($806 million) loan to support the ailing car giant AvtoVAZ, the government's website said on Thursday.

The funds will be granted to the Russian Technology Corporation, a key shareholder in AvtoVAZ, which in turn will grant an interest free loan to the automaker, the government's website said.

AvtoVAZ CEO Boris Alyoshin earlier said the government's aid in the amount of 25 billion rubles would be channeled primarily to bridging the company's debts for earlier periods. Eventually, AvtoVAZ's investment program will be financed by banks on a market basis, he said.

The company's debt stood at 44 billion rubles ($1.3 billion) as of mid-April, a figure that includes bond issues. The company has several times suspended production over payment disputes with car part suppliers.

AvtoVAZ, Russia's largest car producer, is based in Togliatti in the Volga Region. The company is best known abroad for its Lada brand.