Russian GAZ Group face default risk

  • 16:58 18 April 2019

Russian GAZ Group face default risk

Russian businessman Oleg Deripaska’s GAZ Group is seeking 30 billion roubles ($468 million) in support from the government, citing the risk of a 40 percent drop in second half output, Kommersant newspaper wrote on Thursday, ONA reports citing Reuters.

The newspaper cited a March 29 letter addressed to Deputy Prime Minister Dmitry Kozak by GAZ’s general director Vadim Sorokin saying government funds were needed because of the risk of default and negative socio-economic fallout.

Sanctions-hit van maker GAZ considers the support it currently receives from the state to be insufficient because of its reliance on foreign components, the newspaper reported.