A total of $200 million will be invested in the project, which will see the first cars specifically adapted for Russia rolling off the production line in 2009. Production will initially be 50,000 cars a year, with about 750 jobs being created.
"Russia has been a very successful market for Nissan and we see great prospects for the future," Nissan CEO Carlos Ghosn said in Tokyo. "Russia is an important part of our global growth strategy. This investment demonstrates our confidence in the high potential of the Russian economy."
The Japanese company will join a number of other foreign automotive manufacturers in Russia, including U.S. giant Ford, which also has a plant near St. Petersburg, and France's Renault.
Economic Development and Trade Minister German Gref said in early April that the Japanese automobile manufacturer had decided to invest in car assembly in Russia and was considering three sites.
"The company has decided on investing [in a plant]," he said then. "But no decision on the details has been made yet."
Construction is expected to start after the ministry and the company sign an agreement.
Nissan said the St. Petersburg site had been chosen due to high-quality workforce, attractive location and infrastructure, a supportive business climate and commitment from the regional government.
