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EBRD to Back AvtoVAZ-GM Venture

1 September 2000

EBRD to Back AvtoVAZ-GM Venture

    LONDON, Sept. 1 

    The European Bank for Reconstruction and Development is expected to offer
roughly $175 million in support for a $500-$600 million car-making venture
planned in Russia by domestic producer AO AvtoVAZ and US auto giant General
Motors Corp -- one of the EBRD's largest undertakings in the ex-USSR.
    The full details remain unfixed but it is expected EBRD would offer credit
and take a 14% stake in the venture.  AvtoVAZ and GM each would hold 43%.
    Vladimir Kadannikov, chair of AvtoVAZ's board of directors, said:  "We
have met the EBRD, and we spoke about a scheme where the bank would provide
credit to the joint venture and take shares in the joint venture."