Russian Bank to Provide Loan to AvtoVAZ

Russia's Vnesheconombank has agreed to make an eight-year, 60 billion-ruble (€1.5 billion) loan to the country's largest automaker, OAO AvtoVAZ, Interfax News Agency reports.

Interfax cites Prime Minister Dmitri Medvedev. He says Lada maker AvtoVAZ will use the financing toward its planned 177 billion-ruble (€4.4 billion) overhaul to modernize its plants and develop new models. The company disclosed its borrowing plans in May.

Renault-Nissan finalized a deal last week to buy an indirect controlling stake in AvtoVAZ for 23 billion rubles (€567 million). The alliance's announcement did not mention making additional investments to restructure the Russian carmaker.