Renault to Provide 240M Euro Package to AvtoVAZ

French manufacturer Renault, which currently holds 25 percent in AvtoVAZ, will give the Russian automaker a 240 million euro non-cash package that will contribute to the company's efforts of staying away from bankruptcy. However, Renault several times emphasized that its support will not include cash but will contribute with technology that could make models sold under the AvtoVAZ badge more competitive.

French newspaper Les Echos informed that AvtoVAZ shareholders will meet in Paris on Friday to sign a rescue plan. Russia's state-controlled investment group Russian Technologies, Moscow bank Troika Dialog and Renault will attend the meeting on Friday, the same day when Russian Prime Minister Vladimir Putin travels to Paris, Reuters noted.

Even if the French company clearly stated that it does not intend to increase its stake in AvtoVAZ, the Russian government repeatedly said that Renault would be allowed to do so if it wants to.

"We understand that our work to clear the debts of AvtoVAZ should be considered jointly with the potential possibilities of Renault-Nissan as an investor. Then these measures taken together make real sense," First Deputy Prime Minister Igor Shuvalov was quoted as saying by just-auto.com earlier this month.

Renault confirmed its support for AvtoVAZ but no cash will be provided to the ailing Russian automaker.

"They would love us to pour in lots of money because AvtoVAZ needs money but we don't have a lot of money. We told them we cannot put more money in the joint venture," Renault Chief Operating Officer Patrick Pelata was quoted as saying by Reuters. "We're going to pay our share... It's not small money but it's not half a billion," he added.