Russian aerospace industry to be subsidized out of oil revenues
Russian government will give over 6 billion rubles of its oil revenues to support the country’s aerospace industry. It plans to subsidize the industry from funds generated by excess dividends of Rosneftegaz, a state-owned oil and gas company, and by the sale of Rosneftegaz’s share in the country’s another oil giant — Rosneft. According to the decrees signed at the end of December by prime-minister Dmitry Medvedev these money will be given to the United Engine Corporation (UEC) and the United Aircraft Corporation (UAC) for specific projects.
UEC is to receive extra 783 million rubles (around $12.9 million) for developing and launching serial production of Klimov TV7-117 turboprop engine for Ilyushin Il-114 regional aircraft, and 1.5 billion ruble more for designing a perspective engine for long-haul commercial airliners, now dubbed PD-35.
UAC may count on extra 1.5 billion rubles for the Il-114 program and additional 2.4 billion rubles for upgrading Ilyushin Il-96 wide-body. The respective contributions to the corporations’ registered capitals are to be arranged by the ministry of industry and trade.
The final amounts of the subsidies may differ depending on Rosneftgaz’s actual financial results.
The government’s intention to support the Il-114 and Il-96 programs was voiced by Dmitry Medvedev in May 2016. Later on, deputy minister of industry and trade Andrey Boginsky confirmed that the additional financing would be allocated before the end of 2016. He stated that the additional financing amounts may exceed 2.6 billion rubles.
It has been decided that the final assembly of Il-114 turboprop will be arranged at Sokol plant, in Nizhny Novgorod. The upgraded aircraft’s first flight is scheduled for 2019, and the first deliveries are to follow in 2021. The total amount the government is planning to invest into Il-114 and Il-96 programs may reach 50 billion rubles for each.
The PD-35 engine is intended for Il-96 as well as future wide-body and transport aircraft. UEC has started working on the program this year.
Russian Aviation Insider
Powered by Air Transport Observer, Russia & CIS’ premier information provider on commercial aviation with a 20-year legacy, Russian Aviation Insider provides you with timely and reliable business news, insights and analysis on commercial aviation all around CIS.
Sign up for our free Newsletter and never miss:
Get relevant data from reliable industry sources!
Leave a comment
You must be logged in to post a comment.