Rosneft and Avtovaz agreement strengthens relationship

Rosneft and Russia's largest car manufacturer Avtovaz have signed a deal.

Rosneft will supply its products to Avtovaz and the companies will work together on research and development of lubricants.

Rosneft Lada Vesta

Concept Lada Vesta WTCC Image: Harmony Club Vesta

The deal will include the supply of Rosneft oil products to Avtovaz production facilities, while Rosneft gains a guaranteed distribution channel in return.

The agreement could also strengthen Rosneft's sponsorship of the Lada Sport Rosneft auto sports team.  The two companies will also run a joint team at the World Touring Car Championship (WTCC) and Russian Circuit Racing Series in 2015.

In a slowing Russian car market Avtovaz expects the deal to reduce costs in its purchasing and improve its overall lubes production expenses.

Rosneft President Igor Sechin said: “Such an agreement with the leader of the Russian car industry opens new perspectives for Rosneft that will allow both boosting the sales and increasing the quality of its products, by receiving and analyzing end-customer feedback. The support of AVTOVAZ racing teams will give a substantial push for the development of Russian auto sport, both on the internal and international scene”.