Russia's GAZ to receive $180 mln state aid

MOSCOW, July 23 (Reuters) - Russian magnate Oleg Deripaska's indebted carmaker GAZ (GAZA.RTS) will receive 5.6 billion roubles ($180.2 million) from the state to build a a diesel engine plant, Prime Minister Vladimir Putin said late on Wednesday.

GAZ, the industrial partner in a Magna MGa.TO led bid for Germany's Opel, is among the hardest hit on the Russian auto market, which needs state action to cope with a potential sales decline of 50-60 percent in 2009, PricewaterhouseCoopers said this week [ID:nLL722671]

"The decision has been taken. The financing will be available for the company in a very short time," Interfax quoted Putin as saying during a meeting with the governor of Yaroslavl region where the new plant is to be constructed.

The new plant is supposed to produce 40,000-50,000 engines a year for the GAZ model range and for sale to the market.

Car makers have been hard hit as consumers cut spending in the face of the first recession in a decade, while banks remain reluctant to hand out loans to companies and individuals.

GAZ has already received state guarantees worth up to 20 billion roubles for its loans. The company had almost 45 billion roubles of debts as of March. ($1=31.07 roubles) (Reporting by Dmitry Sergeyev; Editing by Mike Nesbit)