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GAZ to Work on Mercedes Van

German carmaker Daimler plans to cooperate with GAZ in producing Mercedes-Benz Sprinter vans, a person familiar with the matter said Saturday.

The source said a declaration of intent between the companies would be signed Monday, confirming a report in German magazine Der Spiegel.

A spokesman for Daimler said the company did not comment on speculation, while GAZ declined to comment.

A Russian government official who cannot be named as he is not authorized to speak to media told Reuters that the agreement could be signed Monday if the Russian government signed an order to extend a zero import duty on industrial car components.

Der Spiegel had reported earlier that the deal would see GAZ producing Daimler's Sprinter model for the Russian market, in turn receiving access to new technology.

Europe's biggest carmaker, Volkswagen, said in October that talks with GAZ on establishing a Russian vehicle assembly plant had reached an advanced stage.

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