UPDATE 2-Russia may allow Renault to control AvtoVAZ -source
* Source says Renault ready to increase stake
* Renault says maintaining current stake for now
* Opel deal failure to ease Russian pressure on Renault
* Government injecting $1.5 billion into AvtoVAZ from budget
(Adds Renault, Putin on Opel, analyst, detail)
By Darya Korsunskaya
MOSCOW, Nov 4 (Reuters) - The Russian government could allow French group Renault (RENA.PA: Quote, Profile, Research) to buy control of AvtoVAZ (AVAZ.MM: Quote, Profile, Research) as part of a plan to save the ailing carmaker, a Russian government source told Reuters on Wednesday.
The move could make Renault Russia's top foreign partner in the car industry after the decision by General Motors not to sell Opel to a Russian-Canadian group dealt a blow to Kremlin's plans to modernise the auto sector. [ID:nL4519517]
"At the end of the day the government will search for a strategic investor -- and it will likely be Renault," said the source, who asked not to be identified. "They (Renault) are ready to increase their stake and are looking at the option of increasing to a controlling stake," the source said. Continued...
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