PSA Peugeot-Citroen doesn’t yet plan to set up car production or assembly in Russia, but will continue importing, Vedomosti newspaper said on Tuesday, according to Dow Jones, quoting chairman Jean-Martin Folz.

However, Folz reportedly told the paper that the company is constantly studying the situation of the Russian market, the customs duties and one day may change its mind.

Commenting on the group’s 7% decline in operating profit for the first six months despite a 1.8% rise in revenue, Folz said that the company plans to cut the cost of production and raise output by between 600,000 and 700,000 cars a year.

He also said that Peugeot-Citroen plans to use the high oil prices to its advantage, as people will switch from petrol engines to diesel ones, and “we are the best producers of cars with diesel engines in the world.”