Mitsubishi Motors Corporation (MMC) and the Ministry of Economic Development & Trade (MEDT) of the Russian Federation have signed an agreement for the granting of incentives (decree 166) for industrial assembly.

An MMC statement said the agreement "is endowed with the right to incentives but MMC is still in the process of studying the feasibility of local production in Russia".

"MMC will make an announcement once all of its plans are set," the automaker added.

A Mitsubishi Motors Europe (MME) spokesman at the end of November insisted the automaker had still made no final decisions on Russian production despite reports in Japan that said SUV production would start there in 2010.

Citing "sources at the company", Russian news agency Itar-Tass had reported that Mitsubishi Motors Corporation (MMC) planned to begin production of sport utility vehicles in Russia from 2010.

Itar-Tass added that its sources had also said MMC planned to announce its official decision on building its own plant in Russia before 25 December.

But MME executives repeatedly told just-auto during 2007 that no decision was expected before the end of the year.