In response to sanctions, a reported $12 billion is allocated by Russia to bolster its aviation industry, as per information from Reuters.
Russia has provided more than US$12 billion in government subsidies and loans to keep its aviation industry afloat after Western sanctions implemented in response to the invasion of Ukraine halted the supply of key parts and maintenance services.
Source: Reuters
Quote: “Challenged by reliance on foreign aircraft, Russia is confronted with the intricate task of developing its aviation sector independently, relying on domestically sourced components, while acquiring planes from international lessors to prevent additional seizures of its fleet.
Major plane manufacturers Airbus (AIR.PA) and Boeing (BA.N) suspended the provision of services and spare parts in March 2022, discontinuing routine maintenance support for flagship carrier Aeroflot (AFLT.MM) and other Russian airlines,” as per information from Reuters.
Subsequently, Russia has disbursed RUB 1.09 trillion (US$12.07 billion) to sustain the civil aviation industry, covering aircraft manufacturing and financial aid to airlines, based on Reuters’ calculations from data provided by the Ministry of Finance and the Accounts Chamber of the Russian Federation.
These expenses surpass the RUB 547 billion disbursed in 2020-21 during the COVID-19 pandemic, underscoring the substantial efforts by the Kremlin.
“Our aircraft fleet is heavily reliant on foreign-made planes,” remarked President Vladimir Putin last week. “We aim to produce over 1,000 aircraft by 2030, domestically. Action is required.”
Swiss aviation intelligence provider ch-aviation notes that Russian airlines currently operate 991 planes, with only 133 being Superjets from the state manufacturer, the United Aircraft Corporation. Other domestically produced planes like Tupolev, Yakovlev, and Ilyushin are seldom utilized for commercial flights.
The Ministry of Industry and Trade of the Russian Federation, responding to a Reuters inquiry, affirmed ongoing support for the aircraft manufacturing sector, a crucial industry, in the years to come.
