Skoda Transportation and Sinara Group have signed an agreement to establish a joint venture for the production of subway trains, trams and trolleybuses in Russia; both parties will have the same share in the new business, and the products of the joint venture will be marketed under the Sinara-Skoda brand.

Petr Brzezina, chairman of the Skoda Transportation group (www.skoda.cz), said: “Russia is a huge and promising market in which we want to establish ourselves in the long term.

"The local fleet requires a massive renewal, entailing large investments and opportunities.

In Sinara Group, we see a stable and reliable partner with whom we will be able to develop the production of electric vehicles for public transport in Russia.

"Skoda has supplied many high-quality products to the local market in the past, and I firmly believe that we will be able to build on our previous successes with a strong partner.”

Viktor Les, CEO of Sinara-Transport Machines (www.sinaratm.ru), said: “Through our partnership with Skoda Transportation, we will create high-quality modern vehicles for public transport, such as next-generation trams.

"Our experience in development, production and service will enable us to create products that will out-perform existing vehicles in terms of comfort, ergonomics, energy efficiency and environment-friendliness.”

Founded in 2001, Sinara Group is a Russian investment company based in Yekaterinburg, investing primarily in real estate, transport engineering and financial services.

Its Sinara-Transport Machines subsidiary is mostly engaged in the production and full service of locomotives and other vehicles.

The company was founded in 2007 and has 30,000 employees.