Russian govt discussing allocation of 650 bln rubles to aviation industry support - source

MOSCOW. Aug 28 (Interfax) - The Russian government is considering the possibility of allocating more than 650 billion rubles from the National Wealth Fund for projects in the aviation industry, a source familiar with the discussion told Interfax.

Most, about 410 billion rubles could go to the long-term (through 2030) program for updating the fleet of aircraft and helicopters belonging to the Rossiya Special Federal Flight Detachment.

The remaining 240 billion rubles might go to expand the production of civil aircraft, engines and units for the industry as a whole, the source said. He did not specify which production programs, or when and how the funds would be allocated from the National Wealth Fund. Support for expanding production of Tu-214 aircraft totaling 42 billion rubles previously announced by Prime Minister Mikhail Mishustin, is being considered separately, the source said.

The Industry and Trade Ministry and the Rostec State Corporation (which unites aviation industry enterprises) declined to comment. Interfax also sent inquiries to the Ministry of Finance, United Aircraft Corporation , and Rossiya.

Co-financing from the National Wealth Fund for the supply of civil aircraft is provided for by the state program approved in 2021. Leasing companies will purchase equipment for subsequent transfer to carriers at preferential rates, Deputy Prime Minister and Minister of Industry and Trade Denis Manturov said. To do this, the Finance Ministry will redeem the bonds of lessors placed for the project, and when the aircraft begin operating, will repay them at a rate of 1.5% per annum. It is assumed that the source of repayment of bonded loans will be lease payments from airlines.

At the beginning of this year, the government approved passports relating to investment projects for supplying aircraft using the National Wealth Fund funds totaling 270 billion rubles. Specifically, 175 billion rubles will go towards providing 63 new aircraft to Aeroflot in 2023-2025. The 34 SSJ-NEW, 18 MS-21 and 11 Tu-214 aircraft will be provided on an 18-year lease by Aviacapital-service, a subsidiary of Rostec.

About 44.5 billion rubles are being directed toward delivery in 2023-2025 of 86 Russian-made helicopters to 17 regional carriers, including Polar Airlines, Komiaviatrans and KrasAvia. Nearly 50 billion rubles are going toward providing 18 aircraft (8 SSJ-NEWs and 10 Baikals) and 21 helicopters (10 Mi-171A2 and 11 Mi-171A3) in 2024-2026 to the Far East airline Aurora. In both investment projects, the State Transport Leasing Company acts as the equipment supplier. In the first case, the leasing period will be 15 years, and the second, from 10 to 18 years.

In June, at a meeting on aircraft construction in Kazan, Mishustin announced the decision to allocate nearly 42 billion rubles from the National Wealth Fund for a project to increase the production of Tu-214 aircraft to 20 aircraft per year from the previously announced 10. This requires 83 billion rubles. The remaining part of the funds can be raised through Rostec bonded loans, "which can be issued for up to 15 years with a coupon income of approximately 1.5% per annum," the prime minister said.

Forecast figures for the supply of domestically produced aircraft under the program for the development of the air transport industry until 2030 (as amended on August 22, 2023)

Air-craft type Passenger capacity 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total Units SSJ-NEW 98-103 - 2 20 20 20 20 20 20 20 142 MC-21-310 181 - 211 - - 6 12 22 36 50 72 72 270 IL-114-300 64 - 68 - - 2 8 12 12 12 12 12 70 Tu-214 150 - 215 - 3 7 10 15 20 20 20 20 115 IL-96-300 237 - 300 - - - 2 1 2 2 3 2 12 TVRS-44 Ladoga 44 - - - 15 25 25 25 25 25 140 L-410 15-19 - - - - - 40 46 46 46 178 Baikal (LMS-901) 9 - - 5 15 25 25 25 25 34 154 Total 0 5 40 82 120 180 200 223 231 1081