Thursday, 23 Apr 2009
Bloomberg reported that OAO AvtoVAZ, Russia’s biggest carmaker, signed an agreement with OAO Magnitogorsk Iron & Steel covering a guaranteed supply of steel products and a reorganization of debt accumulated by the auto manufacturer.

Magnitogorsk, based in the Russian city of the same name, and AvtoVAZ also will begin coordinating price-setting in this year’s current and next quarters based on steel-production costs.

AvtoVAZ owed Magnitogorsk, Russia’s third-biggest steelmaker about RUB 3 billion as of the end of last year. The Togliatti, Russia based carmaker sold a 25% stake to Renault SA in February 2008.

(Sourced from Bloomberg)