Rostec to sell Avtovaz stake to Renault for more than 10 billion roubles

The logo of Russian state defence conglomerate Rostec is seen on a board at the St. Petersburg International Economic Forum (SPIEF), Russia, June 6, 2019. REUTERS/Maxim Shemetov

ST PETERSBURG (Reuters) - Russian state conglomerate Rostec plans to reduce its stake in carmaker Avtovaz to 25% by selling a stake to France’s Renault, Rostec CEO said on Friday.

Rostec may use proceeds from the sale of new Avtovaz shares to add capital to the carmaker, Sergey Chemezov said on the sidelines of the International Economic Forum.

“We will invest funds, received from the sale, more than 10 billion roubles ($154.20 million), in Avtovaz development. French partners will make an investment as well,” Chemezov said.

He added that Renault will invest about three times more than Rostec.

Reporting by Gleb Stolyarov; writing by Andrey Kuzmin and Maria Tsvetkova; editing by Louise Heavens and Kirsten Donovan