The Russian Defence Ministry is to set up a joint assembly line with Italian automaker Iveco to produce LMV M65 tactical vehicles in Russia.
The LMV M65 is a light multirole armoured vehicle designed for strategic and tactical mobility with a high level of protection against anti-tank and anti-personnel mines.
The LMV M65 assembly line will be based at one of the sites of Russian truck manufacturer KamAZ.
Russia has plans to acquire 1,497 Italian vehicles by 2016, which will be acquired by the Russian Interior Ministry and the Federal Security Service of the Russian Federation.
The Defence Ministry plans to spend R30bn ($1bn) on the project, with the average price of a vehicle being €300,000 ($395,340), according to the Kommersant daily.
Italian LMVs have been used in Iraq, Afghanistan and other Nato missions.