The tankette in the LKZ Factory. 1940.

In March 1940, LKZ's Design Bureau developed a new tracked tankette "Object 217". Works were led by J.Y.Kotin, Chief-Engineer was L.E.Sychev. New vehicle was intended to be a close support armored fighting vehicle and considered as mobile armored machine-gun. During works, vehicle received "PPG" designation.

The most glare feature of the PPG was it crew layout. During movement they were in sitting posture and armored hatch is opened; in combat position the hatch is closed and crewmen are in a prone position. On long distances, the PPG intended to be transported by a truck.

The PPG Tankette was intended to be used in battles on Karelian isthmus during the Winter War. In spring 1940, one tankette was manufactured but the Winter War ended, so all further works on PPG were delayed and later abandoned at all.