MOSCOW, January 11. /TASS/. BMW has set up a subsidiary - BMW Russland Automotive LLC - in Russia’s Kaliningrad as part of its program on production development in the country, a representative of the company told TASS.

"Indeed, the company named BMW Russland Automotive LLC has been registered in Kaliningrad. This is a planned step as part of our work to develop production in Russia," he said.

"As we said earlier we are in talks that have so far come up dry, and we have not yet made a decision on production in Russia, nevertheless this is a step in this direction," the source added.

Russia’s Industry and Trade Minister Denis Manturov said last month that BMW is negotiating projects on plant construction with St. Petersburg, the Moscow Region and Kaliningrad.

The company unveiled plans to take a decision on plant construction in Kaliningrad in late March 2017. The plan was to define the parameters of a special investment contract - a new mechanism to support foreign and local industrial producers providing an advantage of guaranteed fixed tax conditions in exchange for investments from the side of business - by June. The production is to be set up in two stages with the capacity of 25,000 cars per year each.