Putin announces Lada rescue deal

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French carmaker Renault has signed a deal to save struggling Russian partner Avtovaz, the maker of Lada cars.

Russia's Prime Minister Vladimir Putin announced the 240m euro ($357m; £218m) deal during a visit to Paris.

The deal also sees Russia increasing support for Avtovaz from 25bn roubles to 75bn roubles ($2.5bn; £1.6bn), in order to clear company debts.

Mr Putin also said Avtovaz and Renault planned to start assembling Nissan models in Russia's Far East.

Renault's contribution will be in the form of technology transfers, machine tools, equipment and expertise.

Under a new business plan, Lada will develop a new car to replace the Lada Classic and increase production to 900,000 vehicles per year at its plant at Togliatti in the Samara region of Russia.

Pipeline

During the visit, Mr Putin also announced a deal between EDF and Russia's Gazprom, which will see the French energy group joining the consortium laying the South Stream gas pipeline under the Black Sea.

It is planned that about 35% of all Russian gas supplies to Europe will be exported along the line. The project starts in 2015.

Mr Putin is overseeing the signing of about 25 agreements on his visit to Paris.