Ukraine imposes sanctions on Russian aerospace industry

The new list of Ukraine sanctions includes Russian major aerospace manufacturers as well as a number of airlines Russian aerospace companies’ Ukrainian assets blocked by the country’s government (Photo by Leonid Faerberg /

Ukraine has introduced new sanctions against Russian aerospace companies. The list includes United Aircraft Corporation (UAC), Rostec with its subsidiaries United Engine Corporation, Russian Helicopters, Technodynamica and KRET (Radio-electronic Technologies Concern) and separately Rostvertol, a part of Russian Helicopters holding. The measures were imposed for the term of 12 months by the decree signed by the Ukrainian President Petro Poroshenko on October 17.

Most of the measures are aimed against the UAC. The decree blocks the corporation’s Ukrainian assets and restricts its rights to trade and participate in joint projects. UAC is also kept from moving its resources across Ukraine and from flying to the country. Ukrainian economic and financial liabilities to the Russian aerospace corporation are suspended, and its licenses and approvals issued earlier by the Ukrainian authorities are now cancelled, as well as its technology transfer and intellectual property rights.

Similar measures have been imposed on Rostec and Rostvertol’s assets and Ukraine’s liabilities to these companies. Any business contacts and financial transactions with these entities are prohibited.

The presidential decree explains that the Russian aerospace companies’ activity “threatens Ukraine’s national interests, sovereignty and territorial integrity.” They are also accused of supporting terrorist activity and invasion in Ukraine.

UAC is currently “studying the details of the sanctions,” RIA Novosti newswire reports. The corporation’s spokesperson told the media that UAC has been preparing for such a turn of events. “For the last several years UAC has been consistently working on replacing foreign-made components with ones that are produced domestically, and diversifying its supplier pool. “This enables us to reduce the risks,” the spokesperson said.

UAC worked on a joint project with Ukraine’s Antonov to manufacture An-148 regional jets in Voronezh, Russia. The Russian company announced earlier this year the production would be suspended from January 2018.

Ukrainian manufacturers also supplied engines for the Yak-130 jet trainer, produced by UAC, as well as for several rotorcraft models assembled by Russian Helicopters.

Rostec and Rostvertol have not provided comments.

Several Russian airlines have also been affected by the Ukrainian sanctions – UTair, UVT-Aero, NordWind, Angara, Izhavia, Tulpar, Uktus, Pegas Fly, Alrosa, JAGroup and Sokol. These carries have been added to the list of first-tier Russian airlines, banned last year, for which the restrictive measures have now been extended for another year.

In October 2015 Ukraine imposed a total ban on Russian carriers to fly in its airspace.

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