The Russian government is considering raising nearly $2bn on the market to help Avtovaz, the embattled carmaker, stave off bankruptcy and pay off its debts, Vladimir Putin, the Russian prime minister, said on Tuesday.

Mr Putin said the government was looking at plans to raise 54.8bn roubles ($1.87bn, £1.1bn) to help Avtovaz, Russia’s biggest carmaker, pay off 38bn roubles in debt and inject at least another 12bn roubles in funds to upgrade the company’s outdated Lada cars and 4.8bn roubles to create new jobs.