ZaoAvtotor, a Russian car maker, has held talks with China's Nanjing Automobile, owner of the MG brand, to assemble MG cars in the Kaliningrad region, Kommersant newspaper reported.

The companies signed a preliminary agreement after a Nanjing delegation led by company President Yu Jianwei visited the Avtotor plant two weeks ago, the Moscow-based newspaper said, citing an unidentified person with knowledge of the matter. Nanjing is interested in the Russian market and exporting to Europe from the plant, Kommersant said, citing Avtotor Executive Director Alexander Sorokin. The plant may assemble as many as 25,000 MG cars a year, the report said.