The deal will accelerate the companies' efforts to capitalize on growth opportunities within the Russian and other automotive markets, a joint statement said.
"This proposed alliance with Basic Element ... is an exciting opportunity for Magna. Our partnership will accelerate Magna's growth in Russia and neighboring countries, markets that we see as holding significant opportunities for us," Magna Chairman Frank Stronach said.
Basic Element is one of the largest, privately held industrial conglomerates in Russia, and is beneficially held by Oleg Deripaska, ranked the world's 62nd richest man by Forbes Magazine in 2006, with an estimated wealth of $7.2 billion.
Deripaska, who is also chairman of the board of directors of Russian Machines, praised the company's investment: "Our partnership with Magna gives us unique competitive advantages and significant growth potential within domestic and neighboring markets."
Russian Machines holds an interest in Gaz Group which is Russia's second-largest automotive company, Magna said.
