Russian carmaker IzhAvto and Russia's Economic Development and Trade Ministry have signed an agreement that stipulates lower customs duties for importing components for the assembly of Kia Spectra cars at Izhavto's facilities, the ministry said, according to the Prime-Tass news agency.

The duties were set at between 0% and 5%, the ministry said.

According to the agreement, IzhAvto is to gradually replace imported auto components with those produced in Russia.

IzhAvto said earlier that it had already launched pilot assembly of Spectras and planned to start mass production on August 22.

Prime-Tass noted that, in late March, the Russian government approved a ruling to reduce customs duties on auto part imports in Russia to spur foreign producers' assembly projects in the country.