$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: