Developed and produced at the Lviv Automobile Plant (LAZ) in Ukraine, the LAZ made high-floor urban bus was sold in good numbers even though there were several problems such as overheated engines, small doors and small space inside the bus.

The inspiration to make this model in 1955 was borrowed from buses made by German firms such as Magirus and Mercedes (especially the model O321H).

LAZ 695B – Urban was produced for the next 30 years and some of the buses were used until as late as 2001.