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:
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
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 every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
