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. Last Updated: 07/27/2016

Volkswagen Mulls St. Pete Factory

St. Petersburg's deputy governor, Sergei Vetlugin, said Tuesday that Volkswagen is considering the construction of a car factory in the northern capital.

The carmaker's representative office in Moscow could not confirm the report. A Volkswagen official did say, however, that "we have talked with many local administrations in the course of our market research, including St. Petersburg's."

Vetlugin said the auto company was considering two sites for the factory, Interfax reported, but people close to the city government said his statements may have been premature.

Officials of the Leningrad region, which surrounds St. Petersburg, said Volkswagen has held talks with Governor Valery Serdyukov and his deputy, Grigory Dvas, on building an auto factory on their territory.

"Volkswagen spoke with Serdyukov and Deputy Governor Dvas in October, and at the time they were considering the Moscow region as an option too," Dvas' spokesman, Alexander Butenin, said in a telephone interview.