Russian car manufacturer Avtovaz, which owns Lada, is in line for a 20bn rubles (£410m) government bailout.
Avtovaz owes creditors and suppliers more than 44bn rubles (£900m) and it is asking for 26bn rubles (£530m) of government aid to pay some of its bills.
Russian prime minister Vladimir Putin told Avtovaz workers at the company’s Togliatti plant: "The sum that is being discussed is over 20 billion rubles."
Shares in the company surged after the news broke in Russia.
Russia's Industry Ministry said earlier this week that it expected new car sales in Russia to drop more than 60 percent this year, which is higher than it originally predicted.
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