A Kremlin-friendly populist party is set to form its first regional government in Germany, after signing a coalition agreement with Olaf Scholz’s Social Democrats (SPD).

Sahra Wagenknecht’s Left-wing BSW has agreed to prop up the SPD in the eastern state of Brandenburg, where the latter party narrowly secured victory in state elections in September.

Der Spiegel magazine reported on Wednesday that the two parties have signed an agreement that will appoint the SPD’s Dietmar Woidke as state prime minister, and Robert Crumbach of the BSW as state chairman.

The BSW came third place in the Brandenburg elections, behind the hard-Right Alternative für Deutschland (AfD) party.

The result is a major coup for the BSW, which has performed strongly in several state elections in eastern Germany despite being founded less than a year ago.