Under the instruction of the Russian Government VTB Bank, Sberbank, State Corporation Russian Technologies and JSC AVTOVAZ signed a Memorandum of Understanding to pursue opportunities for developing long-term and efficient cooperation in the areas of mutual interests.
The main areas of cooperation include: restructuring of current loans of AVTOVAZ in VTB and Sberbank, current lending to and financing of the automotive group’s investment projects, attracting investment at the international and domestic markets to implement joint projects.
On behalf of VTB, the Memorandum was signed by Mikhail Kuzovlev, First Deputy Chairman of VTB Bank Management Board, on behalf of Sberbank by Evgeny Korolev, Deputy Chairman of the Management Board, on behalf of State Company Russian Technologies by Igor Zavyalov, Deputy Director General, and on behalf of AVTOVAZ by Igor Komarov, President of the company.
Citing Mikhail Kuzovlev, “the agreement will become the initial point of a new stage of cooperation among the parties under the strategy of AVTOVAZ development and restructuring of automotive industry in Russia”.
“As one of the enterprises of the Russian economy’s priority sector, AVTOVAZ has always been a strategic customer of VTB. Signing of the Memorandum will contribute to the increase of the company’s market capitalization, investment attractiveness of its funding instruments and successful implementation of its manufacturing program and investment projects”, said Valery Lukyanenko, Member of VTB Bank Management Board and Head of the First Corporate Segment supervising, among other things, the automotive industry.
JSC AVTOVAZ is the largest manufacturer of passenger cars in Russia and Eastern Europe. At the end of 2009, the share of JSC AVTOVAZ in the Russian market attained nearly 25%.