Interfax reports that Toyota is negotiating with the St Petersburg regional authorities over the building of an automobile assembly plant there, according to a source in the regional governor's apparatus.

The report said that the Japanese company is at this point only looking at possibilities for siting assembly production in the region. "They need a lot of room, around 400 hectares. We are ready to offer such a site in the industrial zone of Gorelovo," a source said.

Toyota is conducting similar talks with the authorities of other regions in Russia, the source added.