Russia's AvtoVAZ to assemble Renault engines-paper

MOSCOW, July 3 (Reuters) - Russia's largest car maker AvtoVAZ (AVAZ.MM), in which France's Renault (RENA.PA) has a quarter of the shares, will buy a licence to produce 450,000 Renault car engines, a business daily reported on Thursday.

Vedomosti quoted AvtoVAZ President Boris Alyoshin as telling Interfax news agency the two firms were ready to sign a contract on the assembly of 1.4 and 1.6-litre petrol engines for its Lada cars and Renault vehicles produced at its Russian plant.

He gave no financial terms of the deal.

The paper also quoted a source close to the Russian carmaker as saying AvtoVAZ had yet to decide whether it will build a new plant to make the engines or upgrade existing facilities. (Reporting by Maria Kiselyova; Editing by Tomasz Janowski)