ST. PETERSBURG, October 21 (RIA Novosti) - Italian Prime Minister Silvio Berlusconi arrived in Russia on Wednesday to discuss bilateral investment projects, trade and economic relations and energy projects with his Russian counterpart Vladimir Putin.

Putin met Berlusconi at Pulkovo airport, near St. Petersburg.

The two heads of government are set to discuss the issue of car production in Russia.

"Tonight and tomorrow we will have the opportunity to familiarize you with cooperation issues. The talk is also about cooperation with Finmeccanica and Fiat. We will consider the possibility to produce cars and agricultural equipment at one of our enterprises," Putin said at the meeting.

The Russian Technology state corporation and Italy's Fiat automaker are setting up a joint venture to assemble agricultural and construction equipment at a production site of Russian truck maker Kamaz in the republic of Tatarstan in line with an agreement signed on October 8 in Putin's presence.

The cooperation of Russian companies with Italian concern Finmeccanica includes projects involving Superjet 100, cellular communications, transportation projects and the modernization of Russian railroads.

Putin, Berlusconi and St. Petersburg governor Valentina Matviyenko also discussed the joint production of streetcars in Russia's second largest city.

On Thursday Putin and Berlusconi, joined by Turkish Prime Minister Tayyip Erdogan, will discuss the 25 billion-euro ($36.5 billion) South Stream gas pipeline project designed to annually pump 31 billion cubic meters of Central Asian and Russian gas to the Balkans and on to other European countries, bypassing Ukraine.