Interfax cited Mr Alexander Volkov president of Udmurtia a saying that IzhAvto has nearly completed the paperwork on a resumption of car assembly operations.

IzhAvto has been shut down since May 2009.

The statement says that the Russian Industry and Trade Ministry has expressed its willingness to conclude an additional agreement with IzhAvto and the Economic Development Ministry on assembly of Hyundai and KIA cars.

It says that "The issue of discount customs duties on component importation has not been discussed."

Mr Volkov also said he has great hopes for a project to assemble Avtovaz classic models. The statement says "This production will resume after preparatory work before the end of the third quarter of 2010. Talks with Avtovaz on resuming deliveries of kits are currently underway."

It was reported earlier that Hyundai signed a memorandum of understanding with Udmurtia last April. Hyundai wants to produce 500,000 cars a year in Russia, while the facility in Izhevsk can be used to produce commercial vehicles.

(Sourced from Interfax)