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Peugeot plans to sign deal on car production in Russia

Russia's economics ministry and French carmaker Peugeot-Citroen plan to sign an investment agreement on industrial production of Peugeot cars in Russia at an economic forum in St. Petersburg, a ministry official said Thursday.

Dmitri Levchenkov, a deputy head of the investment department with the Russian Ministry of Economic Development and Trade, said the agreement, worth €300 million ($405 million) in investments, has already been prepared and may be signed at the St. Petersburg Economic Forum, which opens Friday. He also said that the French company has not decided yet where to open a plant to manufacture their cars, but that they are considering the Saratov and Nizhny Novgorod regions and the Volga republic of Tatarstan.

At the annual three-day forum in Russia's second-largest city the ministry also plans to sign an agreement with Swedish automaker Volvo on truck production in Russia, and is currently also in talks with Japan's Mitsubishi and Suzuki. Earlier, Kirill Androsov, a deputy economic development and trade minister, said the economic forum in St. Petersburg is expected to produce deals worth $3.3 billion and gather 6,000 officials and businessmen from 60 countries. (