11 Dec 2009 10:17

Govt to allocate 45.2 bln rubles to UAC recovery - Putin

MOSCOW. Dec 11 (Interfax) - The Russian government will allocate 45.2 billion rubles to support the financial recovery of United Aircraft Corporation, Prime Minister Vladimir Putin said at a government meeting on Thursday.

Aircraft manufacturing will get 13.5 billion rubles, he said.

UAC's debt portfolio currently totals 162 billion rubles. "The company is able to service about 100 billion rubles and it is doing so. That gives UAC confidence in its financial plan," Deputy Prime Minister Sergei Ivanov said.

Ivanov said 31.7 billion rubles of the state support would be used to repay bank debt coming due and 7.7 billion rubles would be provided via Vnesheconombank (VEB) for debt servicing.

UAC has completed the corporate formation process. All the aviation manufacturing assets have been consolidated and its shares are quoted on the stock exchange, "although not in sufficient quantities at the moment," Ivanov said.

The Zvezdochka enterprise will receive 395 million rubles in assistance and the Omsk Engine Factory will receive 560 million rubles, he said.