OAO Sberbank and the Moscow government signed an agreement to set up new carmaking plant at the Moscow-owned AMO ZIL plant with a 12 billion-ruble ($275 million) investment, Sberbank Chief Executive Officer German Gref and Moscow Mayor Sergei Sobyanin said.
Russia’s largest lender will set up a joint venture called Mosavtozil, in which it will hold 51 percent and will provide a 6 billion-ruble loan to finance the project for five to seven years, Mosavtozil General Director Igor Kulgan said.
The plant will have the capacity to produce about 150,000 light commercial vehicles of yet-unnamed foreign brands. Mosavtozil is continuing negotiations with France’s Renault SA (RNO) and Fiat SpA’s Chrysler Group LLC to assembly their cars.
Sberbank plans to sell its stake to a strategic investor in 2017, Kulgan said.
To contact the reporter on this story: Anatoly Temkin in St. Petersburg at email@example.com
To contact the editor responsible for this story: James M. Gomez at firstname.lastname@example.org