MOSCOW, May 26 (RIA Novosti) - The economics ministry said Friday it would sign an agreement with Volkswagen AG Monday to open a car-making plant in Russia.
"The agreement will lay down imports of components for industrial car assembly at preferential customs duties in accordance with a government resolution on industrial production," the ministry press service said.
The ministry did not say where the German carmaker would open the plant, but earlier Deputy Economic Development Minister Kirill Androsov said that VW was considering Yaroslavl, Kaluga, Moscow and Vladimir regions in central Russia.
Semi-knocked-down production is due to start late 2007, and the plant will annually roll out about 115,000 Volkswagen Gol and Skoda Octavia models, the company announced earlier. Completely knocked down production will begin later.
Other foreign carmakers active in Russia include Ford, which currently assembles its cars in the Leningrad Region town of Vsevolozhsk, Renault in Moscow and General Motors, BMW and Kia in Kaliningrad, Russia's exclave on the Baltic Sea.
Japans' Nissan is also planning to launch production in Russia soon. Russia's SeverstalAvto has signed licensing agreements with FIAT, Ssang Yong and Isuzu. AvtoVaz and General Motors are producing the Chevrolet Niva 4WD.
