Sandero production will start at the Avtoframos factory (established in 1998), which has been building Logan models since 2005, and output will reach 160,000 vehicles per year.
Sandero, "roomy, robust, and with plenty of luggage space" according to the company's promotional materials, will be manufactured in Russia with either a gasoline or diesel engine.
The Moscow city government and Renault set up Avtoframos in 1998. The joint venture rolled out around 80,000 cars in 2007, a 41% rise on the previous year.
Renault sales in Russia increased 148% in 2006 year-on-year to over 72,000 cars, with over 45,000 cars sold in the first half of 2007.
Renault continues to expand its network in Russia, which currently comprises 74 dealerships in 61 cities.