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Putin calls for aviation boost
Published: 18 December, 2009, 11:24
Edited: 22 March, 2010, 15:08
TAGS: Investment, Manufacturing, Economy, Finance
Vladimir Putin has ordered an extra $700 million to be pumped into the country’s aircraft manufacturers.
The money will be channeled to aviation holding United Aircraft-Building Corporation through the state-owned VEB Bank.
“A decision is to be made to contribute 21 billion rubles to the UAC charter capital," he said, adding that the measure had taken several months to draft. “It was studied very carefully and must be adopted today.”
“These funds were earmarked for the company's financial rehabilitation, and for settlements with creditors and providers,” Putin said. He said that the UAC early next year would receive an extra 10.7 billion rubles from the federal budget.
The UAC incorporates 18 enterprises, such as the holding company Sukhoi, foreign economic association Aviaexport, leasing company Ilyushin Finance, research and industrial association NPK Irkut, inter-state aircraft-building company Ilyushin, aeronautics company Tupolev and the Financial Leasing Company.
"This money will be spent not to plug holes, but to build new civil planes," the prime minister said.
Next year will see the first deliveries of the SuperJet- Russia's first new passenger plane since the Soviet Union – as well as a new version of the world’s largest aircraft the An-124.
17.12.2009, 20:10
2 comments
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James, it is because Russia will rely on aviation as a means of transport for its vast territory. Traditional infrastructure development, such as roads are not sustainable except on a localized basis. Trains and aviation are the future of Russia. Russia has oil, and if the world minimizes the use of hydrocarbons, more will be left to fuel its own development. The reliance on exports has proven to be a tricky proposition for many countries, and Russia, that is lagging so far behind, will not even try to go that route, with the exception of few target industries. Russia will reorient to boosting domestic production, to minimize imports, and keep foreign trade on an even keel.