The Russian government is considering raising its share in the charter capital of the country's biggest carmaker

Sunday, February 5, 2023

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The Russian government is considering raising its share in the charter capital of the country's biggest carmaker, a government official said Monday. "It would make sense to convert the debt of AvtoVAZ into investments," said Stanislav Puginsky, the deputy head of the Federal Agency for Industry. The carmaker's debt to the government totals between $180 and $200 million, Russian business daily Vedomosti reported last Monday, with the company's capitalization estimated at $1.38 billion. However, Puginsky said the implementation of this decision would require amendments to the federal budget law. Rosoboronexport, Russia's state-controlled arms exporter, assumed control over AvtoVAZ last year, when its officials took the posts of board chairman and general director of the company. With rumors flying of a possible merger of Russia's three main automotive manufacturers - AvtoVAZ, GAZ and Kamaz - to bolster the struggling domestic auto industry and stave off foreign competition, Puginsky said the issue had been discussed but it was still unclear whether this would lead to any concrete steps.