A decision by Volkswagen on whether to form a strategic partnership with the Russian automaker GAZ Group will be taken by year end.

Earlier this month, Martin Winterkorn, chairman of Volkswagen’s board of directors, said the company had plans to assemble vehicles at the facilities of Russian auto producer GAZ Group. Yelena Matveyeva, deputy CEO of GAZ Group, confirmed that the companies were in talks surrounding the issue.

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Speaking this week, VW Group CEO Dietmar Korzekwa told reporters at an investment forum: “We will decide by the end of this year whether to sign an agreement on cooperation with GAZ Group or go another way.”

He added that whilst the general feeling towards a deal was positive, there were still issues to discuss with the Russian government and the Economic Development Ministry.

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