ST PETERSBURG -- Russian state conglomerate Rostec plans to reduce its stake in AvtoVAZ to 25 percent by selling a stake to Renault.
Rostec may use proceeds from the sale of new AvtoVAZ shares to add capital to the automaker, CEO Sergey Chemezov said on the sidelines of the International Economic Forum on Friday.
Chemezov said Rostec would invest more than 10 billion rubles ($154 million) received from the sale into AvtoVAZ, which builds Lada cars, Russia's top-selling brand.
Renault will make an investment as well, Chemezov said.
Renault will invest about three times more than Rostec, he said.
