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companies told Vedomosti that the contract could double the output at plants involved. The total output under activities covered by the contract are planned at RUB4.9 trillion or RUB490bn annually, as compared to total combined revenues of RUB475bn of Avtovaz, Renault, Nissan, and Mitsubishi in Russia in 2017. Renault-Nissan is the largest shareholder in Avtovaz, together with Russian state technology agency Rostec. Since autumn 2018 Rostec and Renault Nissan seek to consolidate 100% in Avtovaz. In April Avtovaz completed the second stage of a $1bn recapitalization by the French car major and Rostec, which brought their joint stake in the company to 83.5%.
Russia's largest carmaker AvtoVaz will boost the exports of engines to Turkey more than 10-fold in 2018, the head of the company's engine department told Interfax on November 9. AvtoVaz plans to increase the output of engines by 1% to 0.546mn in 2018 and further to 0.59mn in 2019. The number of engines produced at the factory in Turkish Bursa will soar from 4,800 this year to 50,000 in 2019. Bursa is home to large Oyak-Renault factory, producing Renault Fluence and Renault Clio. Renault-Nissan is the largest shareholder in AvtoVaz, together with Russian state technology agency Rostec. Since autumn 2018 Rostec and Renault Nissan seek to consolidate 100% in the Avtovaz. In April Avtovaz completed the second stage of a $1bn recapitalization by French car major and Rostec, which brought their joint stake in the company to 83.5%. Avtovaz posted an IFRS net profit of RUB5.4bn in January-September 2018, swinging from loss seen for the same period of last year. Company's revenues in nine months of 2018 increased by 23.5% to RUB199bn ($3.1bn), attributed to both growing domestic sales and imports. Avtovaz has been in red since 2012, when it made net profit of RUB29.2bn. The company managed to turn profitable on the operational level in 2017 and made a net profit of RUB609mn in 1Q18.
Russian heavy vehicle maker Kamaz raised RUB9.5bn ($145mn) from the Eurasian Development Bank (EABR) for 3.72% of the company's treasury shares. The banks commented that the deal included both equity and bond issuance, Reuters said on November 20 citing unnamed sources. The market price of 3.72% in Kamaz as of the deal's announcement stood at RUB1.5bn, which suggests some other debt issue was also involved. In May German car major Daimler said it could increase its stake in Kamaz from 15% to 19%. Currently state technology agency Rostec controls 49.9% in Kamaz and could sell 4-5% stake to Daimler. Another 23.54% in the company is held by Avtoinvest holding (50% controlled by Vitaly Mashitsky, 20% by Ruben Vardanyan, 30% by head of Kamaz Sergei Kogogin). Daimler previously said it could close an investment deal worth RUB7.7bn with Kamaz on developing new models and modernising production facilities. Kamaz boosted its IFRS net profit in 2017 five-fold year-on-year to RUB3.5bn ($55mn), beating company's own guidance of RUB1.2bn bottom line for last year. In 2016 Kamaz made a spectacular turnaround from net loss of RUB3.3bn in 2015 and boosted its market share on domestic truck market. This was acknowledged by Moody's Investors Service that upgraded its corporate family rating (CFR) Ba3 from B1 with Stable outlook on November 14.
Listed carmaker GAZ controlled by sanctioned Russian billionaire and Kremlin insider Oleg Deripaska decided not to publish third-quarter financial reports due to sanctions, citing the government decree allowing sanctioned companies to withhold reporting. In the end of October GAZ had its sanctions deadline expanded from October 23 to December 12 2018 by the US Treasury Department (USTD). Similarly, the deadlines were expanded multiple times for Deripaska's En+ and Rusal aluminium major as Deripaska
104 RUSSIA Country Report December 2018 www.intellinews.com