FRANKFURT (Reuters) - The German state of Lower Saxony, Volkswagen's <VOWG_p.DE> second-largest shareholder, has no plans to sue the carmaker for damages caused by its emissions-test cheating scandal, its prime minister, Stephan Weil, told a German weekly.

Earlier this week, the state of Bavaria said it would sue Volkswagen, the first regional government in VW's home country to take legal action against the company.

Lower Saxony, which has a veto power on VW's supervisory board and holds a fifth of VW's voting rights, currently sees no legal basis to claim damages, Weil told Welt am Sonntag.

"As a result there are no plans for a lawsuit," he was quoted as saying.

Europe's largest automaker is also caught up in legal action in the United States, South Korea and elsewhere, and is facing billions of dollars in costs related to its emissions-test manipulations, making it the biggest scandal in VW's history.

(Reporting by Christoph Steitz; Editing by Hugh Lawson)