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. Last Updated: 07/27/2016

Hoping for State Aid, ZiL to Reopen Lines

The ZiL truck factory, shut down earlier this week due to a cash shortage, will restart some production lines Monday and is hoping for state financial assistance to resume operations fully, a company spokesman said Friday.

ZiL spokesman Vladimir Nosov said ZiL's parts-producing divisions would restart Monday but that the main production line would remain idle. He said it was not clear yet when it could resume work.

Nosov said that top government officials were studying the company's financial problems and were likely to provide ZiL with some sort of financial aid.

"The ZiL issue is being discussed on a very high level in the government, and we hope the government will help," Nosov said, adding that ZiL general director Valery Saikin had already met with Prime Minister Viktor Chernomyrdin.

But government spokesman Sergei Surov said he was not aware of such a meeting, adding that first Deputy Prime Minister Oleg Soskovets, not Chernomyrdin, was studying the ZiL issue. Officials at Soskovets' office were not available for comment Friday.

All 12 divisions of ZiL, famous for making limousines for Soviet and Russian VIPs, closed down Tuesday due to a lack of money to buy integral car parts.

Saikin said ZiL needed over $250 million to overcome the crisis, but said it was unlikely that the company would receive any new credits from the state. ZiL's board of directors is scheduled to meet Jan. 24 to seek a solution to the crisis.

Although ZiL was one of the first big Russian companies to go under the hammer during the first stages of privatization 1992, it has continued to rely on cheap state credits to survive as shrinking farm and military budgets cut into demand for its trucks.