Fiat has signed an industry assembly agreement with Russia’s Economic Development Ministry based on the conditions of a previous agreement, Economic Development Minister Elvira Nabiullina told news agency Prime-Tass.

Under the deal, Fiat is to produce about 120,000 cars per year. The facilities are expected to be built in the Russian city of Nizhny Novgorod, Dmitry Levchenkov, head of the special economic zone and project financing department at the ministry, said earlier in June.

The ministry also signed an industry assembly agreement with Mazda, also based on the conditions of an earlier agreement, Levchenkov said. The project is expected to be implemented in the Primorsky Region. Mazda is to produce between 25,000 and 50,000 cars per year.

Mazda's 6 sedan [Atenza in Japan] will be made at the US$80m (JPY6.4bn) plant in the Pacific Maritime region, the Interfax news agency said.

A Mazda spokesman told Kyodo News: ''It is a fact that we are considering producing vehicles in Russia. We will announce details at a later date.''

In January, Mazda representatives held talks with Sergei Darkin, governor of the region, to study the feasibility of manufacturing vehicles there, Kyodo noted.