The Russian government will consider a 2.1 billion euro ($2.9 billion) loan for a joint venture between Russian automaker Sollers and Italian car giant Fiat, Prime Minister Vladimir Putin said on Thursday.
"We agreed on the inclusion of each side, the Italian one and the Russian one, into the project," Putin said after a signing ceremony on the establishment of the joint venture between the two companies.
Putin said the state was prepared to provide support to the companies' joint project with the involvement of major banks in which the state has stakes.
Fiat and Sollers will hold equal stakes in the venture. The Italian side will contribute technologies worth 150 million euros ($206 million), in particular the new Compact White platform, while Sollers will contribute its auto-making facility in Naberezhniye Chelny in the Volga Republic of Tatarstan and production capacities at its Volga motor plant.
Sollers, which produces the UAZ sports utility vehicle, assembles foreign brands such as Isuzu and also launched a new production facility in Vladivostok in late December 2009.
The project implementation will create Russia's second largest car producer after AvtoVAZ.
NABEREZHNIYE CHELNY (Tatarstan), February 11 (RIA Novosti)