VW plans, in the medium term, to sign contracts with Russia's GAZ Group for the use of its production facilities and in the long term expand its plant in the Kaluga region, Winterkorn told Prime Minister Vladimir Putin during a meeting.
He said that as the Russian market is expanding, existing production capacities are insufficient.
Putin said the Russian government would do all it could to create an investor-friendly environment for VW in Kaluga.
"I would like to thank you and your colleagues for the decision to set up production in Kaluga. Despite the financial crisis, your company is implementing all of its plans," Putin said.
"The Russian government and local authorities will do all they can to create favorable conditions for this investment: After all, it is 570 million euros [$730 million]."
Volkswagen started full-cycle production at the Kaluga plant in October 2009 and currently assembles Volkwagen Tiguan and Skoda Octavia cars there. Its planned capacity is 150,000 cars a year.
Volkswagen's Russia director Dietmar Korzekwa said in June VW plans to sell 10,000 automobiles this year and 30,000 next year.
RIA Novosti
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