ANNOUNCEMENT 25 Dec 2017

On 25 December 2017, the he 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 Property of the Subject of Investment (Договор об участии РФ в собственности субъекта инвестиций) N 01-09/234 (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: 02017Q3R000017 dated 25.12.2017: http://budget.gov.ru/epbs/faces/p/%D0%91%D1%8E%D0%B4%D0%B6%D0%B5%D1%82/%D0%A0%D0%B0%D1%81%D1%85%D0%BE%D0%B4%D1%8B/%D0%A0%D0%B5%D0%B5%D1%81%D1%82%D1%80%20%D1%81%D0%BE%D0%B3%D0%BB%D0%B0%D1%88%D0%B5%D0%BD%D0%B8%D0%B9/%D0%A0%D0%B5%D0%B5%D1%81%D1%82%D1%80%20%D1%81%D1%83%D0%B1%D1%81%D0%B8%D0%B4%D0%B8%D0%B9?_adf.ctrl-state=zqs0x7ek0_4®ionId=45

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

Financial grant

On 25 December 2017, the Russian Government signed an agreement with government-controlled United Aircraft Corporation to transfer 3.6 billion rubles (USD 62m) towards "deep modernization" of the IL-96 aeroplane.

The transfer was formalized as 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-96 planes and have to be further transferred to Ilyushin Aviation Complex, which is a subsidiary of the UAC. 

Although taken off the assembly line in 2009 after failing to compete with Boeing and Airbus, the IL-96 was relaunched in 2015, as the Russian government's relations with the Western counterparts soared, leading to a new import-substitution drive.

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

 

Background sources on the suspension of production and its resumption: 

http://www.rbcdaily.ru/2009/08/11/industry/426254

http://ren.tv/novosti/2015-11-07/v-rossii-vossozdadut-legendarnogo-konkurenta-boeing-i-airbus

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