"Severstal automotive division which includes UAZ (Ulyianovsk Automotive Plant) and ZMZ (Zavolzhye Engine Making Plant) is ready to work together with international companies on the number of issues," said Vadim Shvetsov, first deputy general director of Severstal. Shvetsov spoke at a conference Investment into Automotive Industry, arranged in Moscow by Adam Smith Institute.

Top management of Severstal is interested in joint projects to develop new car models, build assembly lines and cooperate in the area of car components production. According to Shvetsov, car components production needs special attention. In case of a favorable investment climate Russian government will have to set stringent requirements on localization of car components production facilities. At first only simple parts will be produced locally. Later on high technology products such as engines and transmission devices will also be produced in Russia. India and China had similar experiences. Their prohibitive duties affected the production of components so that international brand names were produced inside the country.

"Based on that experience and Severstal capabilities we made a strategic decision to position Severstal automotive division as a partner in local production of car components for foreign and domestic cars under international brand names," said Shvetsov.