1 Apr 2011 14:56

VEB in early negotiations with Fiat on financing its Russian projects - Dmitriyev

MOSCOW. April 1 (Interfax) - Vnesheconombank (VEB) is in preliminary negotiations for financing Italian carmaker Fiat's Russian project. Fiat recently was deprived of its local partner in Russia.

"We are in negotiations with them [Fiat] in various areas, including the construction of a plant. But so far these are preliminary negotiations," VEB chief Vladimir Dmitriyev told Interfax.

When asked by an Interfax correspondent if these negotiations touched on building a plant in the special economic zone in the Lipetsk Region, Dmitriyev said that this issue was being discussed.

"The concerns having Fiat set up its own production here [in Russia]," he said.

Fiat submitted an application with Russia's Economic Development Ministry at the end of February for industrial assembly operations. The company intends to produce up to 300,000 cars a year in Russia.

Fiat is stuck without a partner in Russia after Sollers announced in February that it was changed its strategic partnership in favor of Ford. The Italian company plans to provide a detailed business plan for its Russian project by June 1.

The project's value, according to unofficial reports, is estimated at up to 2 billion euro.