30 Sep 2022 10:22

UAC to get around 900 mln rubles of state funding for Russian-Chinese plane in 2023 - draft budget

MOSCOW. Sept 30 (Interfax) - Russia plans to allocate 897 million rubles to United Aircraft Corporation (UAC) in 2023 for the development of the CR929 Russian-Chinese passenger airliner, the draft budget for the next three years indicated.

Funding for a "wide-body, long-range airplane" project is proposed under the state program for Russia's scientific and technological development. However, such funding is not included in this program for 2024 and 2025.

UAC has been developing the CR929 with Chinese aircraft manufacturer Comac for several years. Before the Covid-19 pandemic, the first trial flight of the airliner was planned for 2023 and deliveries to customers were supposed to begin after 2025.

But in July 2020, the then head of UAC's civilian division, Ravil Khakimov said that the start of deliveries would be pushed back to 2028-2029. He said the project was going through the Gate-3 stage, meaning collecting and studying proposals from suppliers of systems and components to determine the final configuration of the aircraft.

UAC CEO Yury Slyusar said in August of this year that work on the CR929 is continuing but, given the impact of the pandemic and the imposition of sanctions against Russia over the Ukraine conflict, the project will be updated.

Money for the whole aircraft industry

Funding for the government program to develop the aircraft industry will total 38.5 billion rubles next year, 41.5 billion rubles in 2024 and 39.2 billion rubles in 2025, the draft budget showed. Funding allocated for this year totalled 34.9 billion rubles.

This will include 13.6 billion rubles, 11.4 billion rubles and 10.9 billion rubles, respectively, to support airplane manufacturers in the next three years, for which 14.2 billion rubles was allocated this year.

Helicopter and engine manufacturers could get 1.9 billion rubles and 884.6 million rubles per year, while in 2022 they were each allocated 1.8 billion rubles.

More than 22.1 billion rubles, 27.3 billion rubles and 25.5 billion rubles, respectively, are allocated for the government program to support the aviation industry in the three years, compared to 17 billion rubles in 2022.

Under the program of government contracts for aircraft, there are plans to deliver over 450 planes and 460 helicopters to the market by 2030, UAC parent company Rostec said earlier. Aircraft will be acquired by leasing companies, which will then lease them to airlines at subsidized rates, Deputy Prime Minister and Industry and Trade Minister Denis Manturov said.

Manturov also said that in 2022-2024 the program will be financed by the National Welfare Fund, from which 279 billion rubles will be allocated at 1.5% annual interest.