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. Last Updated: 07/27/2016

Opel to Send $250M to Russia

APWolf and Gref speaking at a news conference in Frankfurt on Monday.

FRANKFURT — Opel’s new management intends to use about 170 million euros ($250 million) of the support funds it receives from Germany to upgrade its business in Russia, a German government spokesman said Monday.

That’s lower than the 600 million euros cited in press reports, though how the total financing and corporate arrangement turns out is still open to talks between governments, GM, Opel and its new owners.

Government spokesman Ulrich Wilhelm said the investment for Russia could take several forms. “The collective umbrella terms mean guarantees, and guarantees in that context can be state aid for factories or credit,” he said.

The German government threw its support for the Magna and Sberbank bid, with Chancellor Angela Merkel and the German government giving 1.5 billion euros in bridge financing to keep Opel afloat and offering 4.5 billion euros more in credit to complete the deal.

Sberbank president German Gref said Monday that the bank saw a long and strong partnership with Opel, which it wants to develop into a more prominent player on the Russian market. “We have big risks, but very good chances to have success in the next five years,” Gref told reporters.

Siegfried Wolf, the co-chief executive of Magna, said as many as 10,500 Opel jobs in Europe could be cut.