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28 juillet 2006

Russia, Ford Motors to sign new agreement - ministry

MOSCOW, July 28 (RIA Novosti) - Russia's economics ministry said Friday it would sign in July an agreement with U.S. carmaker Ford Motors on the industrial assembly of automobiles in northwestern Russia.

A Ford plant in Vsevolzhsk, near St. Petersburg, is set to produce 60,000 Focus models in 2006 and launch production of the Mondeo in 2007. Dmitry Levchenkov, the deputy director of the investment policy department, said that the plant's current status, which allows it to import assembly parts duty-free, expired August 1 and a new industrial production agreement would give Ford import-duty benefits instead.

"We will sign an agreement by August 1," Levchenkov said.

Ford said it was also considering production of the Ford Maverick at the plant, which was opened in 2002.

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