Interfax citing Mr Carlos Ghosn the alliance chief as saying that, Renault-Nissan expects to increase its stake in Russia's Avtovaz to controlling this year.

Mr Ghosn said the alliance was discussing the options with other Avtovaz shareholders. He said he could not say precisely when this would take place, but that the alliance hoped it would be in 2011.

He said a proposal to increase the stake to controlling came from the Russian government at the end of last year.

Mr Ghosn said the transaction could be for cash or shares.

(Sourced from Interfax)