OOO LLK-International, a fully owned subsidiary of PSJC LUKOIL, has signed an agreement to supply factory-fill oils at Ford Sollers’ newly opened plant in Elabuga, in the Republic of Tatarstan, Russia. Ford Sollers is a joint venture between U.S.-based Ford Motor Co. and Russia’s Sollers established in 2011.

LUKOIL’s Genesis oils have been developed to comply with Ford’s factory-fill requirements, the Russian oil major said.

Ford Sollers just opened a USD 275 million engine plant in Elabuga yesterday, which will help make its Russian-produced vehicles less dependent on imported components and currency volatility. Ford Sollers aims to increase the local content of its vehicles to 60% by 2020 to qualify for lower import duties on car components. Its new engine plant in Elabuga aims to produce up to 105,000 engines a year, with the possibility of expanding production up to 200,000 units, Ford Sollers said in a statement.

“Our main target in line with our long-term localization strategy was to launch engine production with a significant level of localization … We are fully committed to this strategy which is key for our business in the current environment,” said Adil Shirinov, Ford Sollers COO.

After years of growth in excess of 10%, Russian car sales collapsed in 2014 as the economy shrank and the ruble weakened, due to lower crude oil prices and Western sanctions over Russia’s Ukrainian policy.

“Participating in the foreign auto concern’s localization program is one of the indisputable priorities of the LLK-International business. Supporting the program we not only invest in the scientific and technical potential of the Russian lubricant industry but also contribute towards the successful development of the vehicle manufacturing industry in the country and its higher competitive ability,” said Maxim Donde, general director of LLK-International.

Ford Sollers already uses LUKOIL lubricants for factory fill at all its plants in Russia, including in Vsevolzhsk, Elabuga and Naberezhnye Chelny.