The government is ready to support GAZ Group

The government is ready to support GAZ Group


 

TASS.- The government is ready to support Oleg Deripaska’s GAZ Group, however, the provision of the company with 29.5 billion rubles requires evaluation.

As reported by Kommersant newspaper, citing the letter written by the company general director Vadim Sorokin to Dmitry Kozak, the car manufacturer is asking for 29.5 billion rubles state support.

As stated by the company press office previously, the aforementioned request is not a direct financial support from the government. The company proposes to use the most part of the funds to support the state consumers of its products. The remaining part of the funds will be used to subsidise the interest rates on loans.

Deripaska had previously told Bloomberg about a possible bankruptcy and the nationalisation of GAZ Group due to the sanctions imposed by the US, which will come into force in July. The businessman is sure that the company has no chance of survival in such circumstances, since many suppliers and partners have already stopped working with the factory due to the risk of the second sanctions. Deripaska has also declared his readiness to reduce his share in GAZ, a similar action with En+, thanks to which the United States lifted the sanctions against Rusal.