The UAE's Tawazun holding will take a 36% stake in Russian car maker Aurus, investing 110 million euros ($124 million) in the company within three years, Russia’s industry ministry said in a statement.

These funds will be used to invest for full-scale mass production of Aurus vehicles, in their localisation, as well as in the development of distribution in international markets, the statement said.

The ministry noted that Tawazun will become the main Aurus distributor in North Africa and the Middle East. While the share of Sollers, another Russian car producer, in Aurus will fall to 0.5% as a result of the deal, Reuters reported.

Aurus is a project and brand run by Russia’s Central Scientific Research Automobile and Automotive Engine Institute, known as NAMI. NAMI owns a 63.5% in the project, which will see it producing a range of luxury cars designed inside the country.