Russia, France to sign deal on modernizing carmaker Avtovaz

Russia and France are preparing an agreement on French auto giant Renault's involvement in the modernization of Russia's ailing carmaker Avtovaz.

The accord could be signed during Russian Prime Minister Vladimir Putin's visit to Paris, Russian Ambassador to France Alexander Orlov said Thursday.

"We are preparing an agreement on Renault's participation in the modernization of the Avtovaz plant, which could be signed on Nov. 27," Orlov said through a video link from Paris.

Avtovaz, Russia's largest automaker, witnessed a sharp sales decline amid the global economic crisis, which highlighted the necessity for the company's modernization, Orlov said.

The Russian government has turned to Renault, which holds a quarter of Avtovaz's shares, and has received positive responses, he said.

The ambassador, however, said the purchase of the French helicopter carrier Mistral is not on the agenda of the upcoming talks.

"There is a positive political attitude towards this issue, but no agreement will be inked at the meeting between the heads of government," Orlov said.

It was reported that the French Navy's Mistral assault helicopter carrier docked at the Leningrad Naval Base earlier this week, where Russian specialists could examine it. The issues of Avtovaz and Mistral ships were believed to dominate Putin's visit to France on Wednesday and Thursday.

Source: Xinhua