The Alliance is partnering up with Russian Technologies in a joint venture that will accelerate product launches and technology transfer to AVTOVAZ.

Dubbed Alliance Rostec Auto BV, the joint venture will control AVTOVAZ and will have the majority stake held by Renault-Nissan.

Renault-Nissan said that the deal promotes Renault, Nissan and LADA’s improved synergy and product development in the fast-growing Russian market.

Carlos Ghosn, Renault-Nissan chairman and CEO, said: ‘Today’s historic agreement is a win-win-win for all companies: Renault, Nissan and AVTOVAZ. It is a significant new chapter in an already solid partnership.’

He added: ‘The joint venture will help accelerate our Russian market offensive. It will support the competitiveness of AVTOVAZ, Russia’s auto industry leader.’

The deal will see Renault-Nissan invest RUB23bn (€575 million), giving it a 67.13% share of the joint venture by mid-2014. The joint venture will then hold 74.5% of AVTOVAZ.

As part of the deal, Mr Ghosn will become chairman of the board of Alliance Rostec Auto BV, joined by three representatives of the Renault-Nissan Alliance and two representatives of Russian Technologies.

The AVTOVAZ board will be increased from 12 to 15 members. Renault-Nissan will have eight board members. 

Russia is the third largest market for the Renault-Nissan Alliance. The Alliance sold 878,990 cars in Russia last year and holds a market share of nearly 33%.