3 Dec 2009 15:43

Govt ready to fund KAMAZ investment projects through VEB

MOSCOW. Dec 3 (Interfax) - The government is ready to finance KAMAZ investment projects through VEB, said Russian Prime Minister Vladimir Putin, responding to questions live on television on Thursday.

"We are ready to support [the company's investment projects] through VEB," he said.

The implementation of investment projects for renewing the plant's model range will require about 10 billion rubles. These funds could be divided in four areas: a new engine, a new gearbox, a new cab, and a new four-wheeled vehicle, KAMAZ said in mid-November. These funds are expected to be raised through lending, presumably, by VEB, it added.

KAMAZ plans to receive a state-guaranteed 2.5 billion ruble loan from Vnesheconombank before the end of 2009, the company also said.

In 2010 the company expects to produce and sell 1,500-2,000 more cars compared to the expected 2009 indicator, according to the company's preliminary production plan. In 2009 KAMAZ plans to produce 24,500 cars and to sell 26,500-27,000 vehicles.