MOSCOW, Sept 26 (Reuters) - Russia's state arms exporter is in talks with billionaires Alexei Mordashov and Alisher Usmanov to sell a stake in Russia's biggest carmaker, AvtoVaz , Rosoboronexport's head said on Wednesday, Interfax reported.
Rosoboronexport, which owns at least 75 percent of the carmaker, is interested in selling a non-blocking stake in AvtoVaz, Sergei Chemezov was quoted as saying by the news agency.
"We will sell a small sake to the one who offers the best conditions," Chemezov said.
AvtoVaz, maker of the Lada car, has been losing market share as it struggles to compete with foreign competitors, many of which have set up greenfield operations in Russia. Talks with potential foreign partners have so far failed to advance.
Mordashov, the majority owner of steel maker Severstal , is ranked as Russia's ninth-richest man by Forbes.
Usmanov, ranked as Russia's 18th-richest man by Forbes, is the majority owner of Metalloinvest, Russia's fifth largest steel maker and producer of nearly 40 percent of the country's iron ore.
Metalloinvest controls two steel plants in Russia and the country's two largest iron ore mines, Lebedinsky GOK and Mikhailovsky GOK.