Actuality December, 10, 2007

Renault Group acquires the blocking (25% plus one share) share holding of AvtoVAZ.

It provides for the trilateral signed  in Tolyatti memorandum of the mutual understanding between Rostecnology public corporation, Renault business group and Troika Capital Partner company.

As Sergey Chemezov, Rostecnology Director General, declared, the price for share holding was “fair, close to the market one”. Memorandum parties didn’ t name

the exact sum declaring that decided not to reveal this information.

“In the nearest future we have to prepare a contract and sign it on or prior to February, 25, 2008”, Chemezov said. “After that Renault will take possession of the blocking share holding”, he stated.

According to Karlos Gon, president of Renault business group, in the long view on AvtoVAZ is possible cars production

of Renault and Nissan makes. But the main priority is development of Lada make, Gon declared.

In the companies joint report is informed that Rostecnology and Renault will become equal shareholders of AvtoVAZ in the long-term partnership.

As soon as VAZ capital will be restructured in the first half of 2008, holding company will be set up where Renault and Rostecnology public corporation will own 50% shares of AvtoVAZ pari passu.

Currently, Renault already has an assembly plant in Moscow – OJSC Avtoframos. Now the plant production capacities make up 80 thousand of Renault Logan cars per year.

However, from 2009 Avtoframos capacities will increase up to 160 thousand cars per year.

According to 2006 results Renault group possessed 7,7% of the Russian foreign-made cars market.

According to the last year results the company sold 72484 cars in Russia, 49323 Renault Logan cars are among them.