Putin to discuss Ford-Sollers project

MOSCOW, April 22 (Itar-Tass) -- Prime Minister Vladimir Putin will
chair a meeting of the Supervisory council of Vnesheconombank (VEB) on
Friday to discuss investments into a joint venture between Russian car
maker Sollers and Ford.
The project envisages the creation of a major facility to annually
produce up to 350 thousand passenger cars and light commercial vehicles.
The target share of local Russian production is 60 percent, including
engine manufacture.
The Kommersant daily earlier said Sollers and Ford are planning to
take out a 10-year loan for $1.2 billion, with two thirds of interest
payments subsidized by the government.
In February Sollers said it had dropped joint venture plans with Fiat
and instead would team up with Ford. Putin earlier promised support from
Russian state banks to Sollers-Fiat project.
VEB will also consider the creation of the managing company for
Russian Direct Investment Fund to co-invest in foreign projects aimed to
modernize and create new facilities in key Russian industries. VEB will
fully own the fund.
It is also planned to discuss VEB participation in financing the
construction of the Olympic village in Sochi for 2014 Winter Games.