Russia may allow Renault to control AvtoVAZ-source

MOSCOW Nov 4 (Reuters) - The Russian government could allow French group Renault (RENA.PA) to buy control of ailing car maker AvtoVAZ (AVAZ.MM), a Russian government source told Reuters on Wednesday.

"At the end of the day, the government will search for a strategic investor -- and it will likely be Renault," said the government source, who asked not to be identified due to the sensitivity of the situation at Russia's largest carmaker.

Renault currently owns 25 percent stake in AvtoVAZ, which has been hammered by tumbling car sales in the worst Russian recession since the mid 1990s.

"They (Renault) are ready to increase their stake and are looking at the option of increasing to a controlling stake," the source said. (Reporting by Darya Korsunskaya and Alexei Kalmykov,Guy Faulconbridge, editing by Dmitry Zdhannikov)