The new Ford Kuga will be built in Russia as part of the joint venture between Ford and Russian firm Sollers.
The Ford-Sollers joint venture started with production of the Transit at a plant in Elabuga. More than 5000 Transits have been built there since the start of the year.
Sales of the current Kuga and Explorer are already up 85 per cent this year in Russia, and it is hoped that figure will increase further with local production. Engines are also planned to be manufactured as part of the the tie-up.