AvtoVAZ Faces Growing Debt as 2022 Performance Remains Under Pressure
In a briefing, Maxim Sokolov, the president of AvtoVAZ, disclosed that the company’s obligations to creditors increased from 100 billion to 120 billion rubles during 2022. He highlighted that the plant paid more than 10 billion rubles in interest charges over the past year, and warned that this financial burden is not expected to ease in 2023.
Speaking to reporters, Sokolov described the 120 billion ruble loan load as not a concrete barrier, yet a persistent drag on AvtoVAZ’s financial model. He characterized the situation as dynamic—vehicles occasionally perform better, occasionally worse—rather than a fixed ceiling that the company can easily surpass.
The executive also did not rule out the possibility of further debt growth in the near future. He noted a recent loan of about 5 billion rubles from the Industrial Development Fund, explaining that the financing is aimed at achieving technological sovereignty in the chassis domain and will be allocated to the advancement of CV joints.
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Source: Interfax