Japanese carmaker Suzuki has signed an agreement with Russia's Economic Development and Trade Ministry to build a car assembly line near St. Petersburg. Production is due to begin in 2009.
Over $US100 MLN will be invested into the factory, which is due to produce up to around 30,000 cars a year.
Construction will start in the first half of next year, and production is due to begin in 2009.
The company says the models it produces in the St. Petersburg plant will be designed to fit Russian tastes.
Osamu Suzuki, the company's President, told Russia Today why Russia is such a lucrative market. “We sold 16,000 cars in 2006 and we plan to sell 21,000 this year but the sales have already exceeded our best expectations. That is why we believe we have great potential in Russia,”
Mr Suzuki said.