Support The Moscow Times!

$20M of AvtoVAZ's Money at Risk in Cyprus

Almost half of AvtoVAZ's profit for last year is stuck in Cypriot banks, according to the car manufacturer's financial report for 2012.

AvtoVAZ currently has 641 million rubles ($20.7 million) in Cypriot banks, some of which may be lost as a result of the financial crisis that struck the Mediterranean island last year, Interfax reported, citing the manufacturer's financials released Friday.

The company said the money at risk belongs to Lada International, AvtoVAZ's official exporter for its Lada range, and that it accounted for roughly 40 percent of the group's total profit, without taking into account the depreciation of interest-free loans.

"Due to the banking crisis in Cyprus, there's a risk that a portion of those funds will not be reimbursed," the company told the news agency, noting that management was unable to assess potential losses at present.

According to its financial report, AvtoVAZ's net profit last year was 29.18 billion rubles, 4.4 times greater than its profit in 2011. The bulk of that profit was attributed to the depreciation of interest-free loans totaling 27.6 billion rubles.

Related articles:

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Continue

Read more