NAMI to transfer former Toyota plant in Russia to Almaz-Antey - ministry

MOSCOW. June 8 (Interfax) - The Russian Industry and Trade Ministry has drafted a government resolution on the sale of the NAMI Federal State Unitary Enterprise's 100% stake in Shushary-Avto LLC, which owns the assets of the former Toyota car factory in Russia.

The resolution was drafted on instructions by Deputy Prime Minister Denis Manturov, also the Industry and Trade Minister. The text was posted on the regulation.gov.ru website. The Industry and Trade Ministry controls NAMI.

"The adoption of the resolution will speed up the solution of the issue of utilizing the production capacity of Shushary-Avto LLC, which, as a result, will contribute to achieving the target indicators of the Russian automotive industry's development strategy in the period to 2035," an explanatory note to the draft resolution says.

The draft will be available for public discussion until June 21.

It does not specify for whose benefit NAMI's 100% stake in Shushary-Avto LLC will be sold. The Industry and Trade Ministry's press office told Interfax that it was being transferred in favor of the Almaz-Antey concern, which plans to launch the production of trucks at the site in the St. Petersburg Automobile Plant, and in 2026, the E-Neva electric crossover.

Shushary-Avto LLC acquired the assets of the Toyota Motor LLC plant in St. Petersburg in the spring after the Japanese concern suspended operations in Russia. Obukhov Plant JSC was designated the management company for the former Toyota Motor plant at the end of April. Obukhov Plant is part of Almaz-Antey, which is controlled by the Russian Federal Property Agency.

Mikhail Podvyaznikov, general director of Obukhov Plant, said in May that 35 billion-37 billion rubles would be invested in the development of the former Toyota car plant until 2026, when the mass-production of electric vehicles starts. Production of the BAZ-S36A11 civilian truck-tractor should begin before than in 2024.

Toyota in September 2022 announced the cessation of production at its plant in St. Petersburg, opened in 2007, where it produced the Rav 4 and Camry models. The company promised to maintain after-sales service for Toyota and Lexus cars in Russia, as well as support for the dealer network.

The concern estimated the costs associated with the termination of production in Russia at 97 billion yen or more than $650 million in its financial reporting.