PARIS/MOSCOW Dec 12 French-Japanese auto
partnership Renault-Nissan on Wednesday
finalised a long-awaited deal to expand in the Russian market,
investing $742 million in a joint venture which will control
Renault-Nissan boss Carlos Ghosn, in Moscow to sign the
agreement, said the deal will accelerate the company's "Russian
The joint venture with Moscow state entity Russian
Technologies ups the ante for Renault-Nissan which has already
made a four-year-old bet on the Russian market. The deal is to
complete by mid-2014, the companies said.
Under the deal, the Franco-Japanese alliance will invest 23
billion roubles ($742 million) to take control of AvtoVAZ via a
67.13 percent stake in the joint venture by mid-2014. The JV
will then own 74.5 percent of AvtoVAZ.
Russian Technologies will hold 32.87 percent of the JV.
As part of the agreement, Renault-Nissan will have eight
seats on an expanded board of 15 members, up from 12 earlier.
The investment comes as Russian car sales have shown a
slowdown. Sales in November were flat for the first time in more
than two years as Russians put off spending following a slowdown
in the country's economy.
(Reporting by Leila Abboud and Megan Davies; Editing by
Christian Plumb and Hans-Juergen Peters)