Russian carmaker AvtoVAZ (AVAZ.RS) said Monday it will spend RUB42 billion ($1.42 billion) in the "near future" on a new line of cars.

France's Renault SA (RNO.LN) and sister company Nissan Motor Co. Ltd (7201.TO) are expected to provide up-to-date technology for the modernization of AvtoVAZ production, Russian Deputy Prime Minister Igor Shuvalov said in a release from the carmaker.

AvtoVAZ, which is 25% owned by Renault, will concentrate on producing a car based on the low-cost Logan platform, it said in the release. It's currently best-known for its Lada cars.

-By William Mauldin, Dow Jones Newswires; +7 495 937 8445; william.mauldin@dowjones.com