Renault-Nissan and Russian Technologies have announced plans to form a joint-venture to takeover AvtoVAZ.

Renault-Nissan and Russian Technologies have announced plans to form a joint-venture to take a majority stake in AvtoVAZ.

As part of the memorandum of understanding, Renault-Nissan will invest about $750 (€571 / £464) million and Russian Technologies will "favorably restructure" AvtoVAZ's debt. Once everything is completed in 2014, Renault-Nissan will be given a 67.13% stake in the joint venture which will control the Russian automaker.

In a statement, Renault-Nissan Chairman Carlos Ghosn said "Today's memorandum is the latest step in an expanding collaboration that helps modernize the leader of Russia's auto industry. Just as Renault and Nissan will continue their technology transfer to AVTOVAZ plants, our AVTOVAZ colleagues will contribute more and more to the Alliance's multicultural management bench."

His sentiments were echoed by AvtoVAZ CEO Igor Komarov who commented, "The company believes the Renault-Nissan Alliance and Russian Technologies shared vision for AVTOVAZ is a key enabler of our future success."

If everything goes according to plan, Renault-Nissan and Russian Technologies will sign a finalized agreement by the end of the year.

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