ANNOUNCEMENT 25 Dec 2017

On 25 December 2017, the Russian Government signed an agreement with government-controlled United Aircraft Corporation to transfer funds towards the design of the new version of IL-114 airplane.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Agreement on the Participation of Russian Federation in the Capital of the Public Shareholding Society which is a Headquarters of an Integrated Institution of the Military-Industrial Complex N 01-09/232 (between Federal Agency for Managing State Property, Ministry of Industry and Trade and Public Shareholding Society United Aircraft Corporation). Russian Registry of Subsidies, Unique ID: 02017Q3S000017 dated 25.12.2017, https://bit.ly/2UAIDaF
Source on Budgeted Amount for 2018: Detailed Plan and Timeline for Implementing State Program on Development of Aircraft Manufacturing in 2013-2025. (Об утверждении детального плана-графика реализации государственной программы Российской Федерации «Развитие авиационной промышленности на 2013 – 2025 годы» на 2017 год и плановый период 2018 и 2019 годов)
Source on Designation for Army and Navy to replace Ukrainian Antonovs: https://www.ainonline.com/aviation-news/defense/2014-09-26/russia-dumps-140t-airlifter-home-made-ilyushins

Inception date: 25 Dec 2017 | Removal date: open ended
Still in force

Capital injection and equity stakes (including bailouts)

On 25 December 2017, the Russian Government signed an agreement with government-controlled United Aircraft Corporation to transfer 9.6 billion rubles (USD 166m) towards the design of the new version of IL-114 airplane.

The transfer was formalized with the Russian government (Federal Agency for Managing State Property) buying equity in the United Aircraft Corporation, but the agreement specified the funds can only be used towards the design and test production of IL-114 planes. 

Although sold abroad, IL-114s target primarily the domestic market. Most of the IL-114s to be produced are expected to be purchased by the Air Force and the Navy, to replace the aging fleet of Ukraine-made Antonov planes.

The budgeted amount for the year 2018 is 6.3 billion rubles (USD 109m), as per the roadmap of the State Program implementation. 

The measure is in the framework of the State Program for the Development of Aircraft Manufacturing in 2013-2015, subprogram 1 on Aeroplane Manufacturing.

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