Manturov allowed state support for AvtoVAZ to reduce its debt burden
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The Russian authorities are considering the possibility of providing state support to AvtoVAZ to reduce its debt burden, but a final decision has not yet been made, said Denis Manturov, head of the Ministry of Industry and Trade. According to him, AvtoVAZ’s accounts payable has increased, including due to the launch of new models.
“As for accounts payable, it has increased because we need to simultaneously launch new models and provide production with working capital in order to fulfill all plans with component suppliers. And we are just thinking of providing them with support to reduce their debt burden, but have not yet worked out a final solution,” said Mr. Manturov on the sidelines of the State Duma (quoted from RIA Novosti).
In January 2023, AvtoVAZ President Maxim Sokolov said that the concern’s net profit under IFRS for 2022 amounted to 1.6 billion rubles. Total debt of the enterprise to creditors for the year grew with approximately 100 billion rubles. up to 120 billion rubles The company does not officially publish financial statements.
In November 2023, Mr. Sokolov said that AvtoVAZ could reduce its production plan for 2023 by 10% because, due to sanctions, the concern “repeatedly experienced a failure in its logistics and financial chains.” At the same time, in January 2024, he stated that the company “maintains financial stability and operates profitably.” The Ministry of Industry and Trade also predicted that 2023 will be a break-even year for the automaker. Last year, AvtoVAZ sales in Russia increased by 70% and amounted to 374 thousand cars.
More details in material “Ъ”.
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