RIA Novosti citing Mr Vladimir Dmitriyev VEB head as saying that Russian national development bank Vnesheconombank will open a RUB 39 billion credit line for a joint venture between Ford and local car maker Sollers.

He said that the 10-year credit line will be opened at an interest rate equaling the central bank refinancing rate, currently at 8%, plus 2%. The total cost of the project amounts to RUB 75 billion and Ford and Sollers will invest 18 billion rubles each in the venture.

Sollers decided to create a production and distribution company with Ford in February having broken off joint venture talks with Fiat for undisclosed reasons.

The venture will include production in the Leningrad region where Ford already has a factory in Naberezhniye Chelny and the Tatarstan republic on the Volga where Sollers also has a plant.

The venture will produce 350,000 Ford cars and light commercial vehicles from the end of 2011.

(Sourced from RIA Novosti)