The Russian government is ready to provide extra support to the ailing car giant AvtoVAZ if its restructuring proves to be effective, Prime Minister Vladimir Putin said on Thursday.
Putin said during an annual televised question and answer session that the Russian government was already allocating 50 billion rubles ($1.7 billion) to the auto maker and Renault, which holds a blocking interest in AvtoVAZ, will provide another 300 million euros ($450 million).
The Russian government has also made a decision to provide 4.5 billion rubles ($155 million) in compensation to the workforce laid off at the auto plant, Putin said.
"But these funds do not include a possible additional package, which the Russian government is ready to provide for the effective actual work in restructuring of the enterprise and its development," Putin said.
Last week, AvtoVAZ and its shareholders represented by Renault, Russian Technology Corporation and Troika Dialog brokerage signed a letter of intent on the auto giant's restructuring. The document stipulates that Russia will support AvtoVAZ with finances while Renault will contribute technologies that are very much needed by the Russian auto giant.
At the same time, Putin said that Russia would never agree to the semi-knocked down method at the plant, adding that a new Lada car based on a new platform must be developed by the carmaker.
MOSCOW, December 3 (RIA Novosti)
