Russia spends US$12 billion to support aviation industry amid sanctions – 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: "Dependent on foreign-made aircraft, Russia faces the daunting task of developing its aviation industry alone with domestically sourced parts, while buying aircraft from foreign lessors to avoid more of its fleet being seized.

Western planemakers Airbus (AIR.PA) and Boeing (BA.N) halted supplies of services and spare parts in March 2022 and dropped regular maintenance support for flag carrier Aeroflot (AFLT.MM) and other Russian airlines," Reuters said.

Since then, Russia has spent RUB 1.09 trillion (US$12.07 billion) to support the civil aviation industry, including aircraft manufacturing and financial assistance to airlines, according to calculations by Reuters based on data from the Ministry of Finance and the Accounts Chamber of the Russian Federation. 

The expenditures are nearly twice the RUB 547 billion paid out in 2020-21 when the COVID-19 pandemic caused a sharp reduction in air travel, highlighting the scale of the Kremlin's efforts.

"Our fleet of aircraft is very overloaded ... with foreign-made planes," President Vladimir Putin said last week. "We plan to produce more than 1,000 aircraft by 2030, our own planes. Work is needed."

The Swiss aviation intelligence provider ch-aviation said that Russian airlines currently operate 991 planes, including 405 of Russian origin. However, only 133 are Superjets produced by the state manufacturer, the United Aircraft Corporation. Other Russian-made planes such as Tupolev, Yakovlev, and Ilyushin are rarely used for commercial flights.

Support for aircraft manufacturing, a key industry, will continue in the coming years, stated the Ministry of Industry and Trade of the Russian Federation in response to a Reuters inquiry.

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