The current debt burden at AvtoVAZ surpasses 100 billion rubles, according to a report by Prime, citing Maxim Sokolov, the company’s chief executive.
Sokolov noted that the level is substantial. It sits above 100 billion rubles and, given the debt structure, certain credit lines are renewed while others are closed in response to shifting financial conditions. He spoke about these dynamics during an interview aired on Rossiya 24 and referenced by Prime News in relation to AvtoVAZ’s indebtedness.
In the interview, Sokolov explained that the automaker also paid more than 10 billion rubles in interest on its loan obligations. He emphasized that AvtoVAZ is actively working to reduce its debt load and count on support mechanisms available to manage liabilities. These measures include careful refinancing and strategic debt management to stabilize the company’s financial position.
Earlier discussions indicated AvtoVAZ was taking steps to regulate the export of Lada Niva vehicles to Middle Eastern markets, signaling a broader approach to balancing production, sales, and revenue streams amid evolving global demand. This context underscores the company’s ongoing efforts to navigate financial pressures while pursuing growth opportunities across key regions.
Industry observers note that high leverage can impact liquidity, credit ratings, and investment plans, yet AvtoVAZ appears to be prioritizing debt optimization and cash flow discipline. The balance between maintaining production capacity and securing favorable financing terms will likely shape the company’s strategy in the coming quarters.