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Renault has formally signed its deal to become the long-term strategic partner for the Russian vehicle manufacturer AvtoVAZ.

The deal, signed in Moscow, will see Russian Technologies and Renault become equal shareholders in AvtoVAZ, which makes Lada cars. Each will hold a 25 per cent stake plus one share. The deal was first announced in Moscow in December. The confirmation deal was signed by Carlos Ghosn, president and CEO.

Under the agreement, AvtoVAZ and Renault will share manufacturing and marketing know-how and technology with the aim of improving the Lada vehicles. The deal gives the Russian group access to Renault's platforms and powertrains and the first new Lada product to come from the collaboration is due for launch at the end of 2009.

Once European Commission approval has been obtained, Renault will put five executives on to the executive committee of AvtoVAZ, with four of them coming from the French parent. Renault will also have three of the 12 seats on the main board, including Ghosn and Patrick Pelata, executive vice-president.

Yann Vincent from Renault has been named as chief operating officer, with Hugues Desmarchelier as the vice-president in charge of vehicle development.

AvtoVAZ controls around 70 per cent of Russian car manufacturing, producing around 750,000 cars a year. Sales of Lada vehicles will now be consolidated in Renault's figures.