Federal subsidies for Russian aviation planned for 2024-2026 to be cut 10% - draft budget materials

MOSCOW. Sept 26 (Interfax) - Federal subsidies to support the aircraft industry in the next two years will be reduced 10% relative to current state budget allocations based on materials for the 2024 draft budget and for the 2025-2026 planning period, which Interfax has reviewed.

In 2024, 37.3 billion rubles are planned to go toward the implementation of the Aviation Industry Development program, while 41.5 billion rubles are allocated for this in the current budget. For 2025 and 2026, 35.3 billion rubles were allocated for each year versus 39.2 billion in the 2023 budget and budget forecast, respectively. For 2023, the current budget shows 31.1 billion rubles, while, in fact, 45.5 billion rubles were allocated over the first eight months of the year, the materials show.

The federal "State Support for the Aviation Industry" project expects there will be a reduction in subsidies versus plan: in 2024, the expected reduction is 40% (16.5 billion rubles allocated), in 2025, 32% (17.3 billion rubles), in 2026, by 24% (19.4 billion rubles). For example, subsidies will be reduced for airlines to compensate in part for costs associated with aircraft maintenance. In 2024, they will be reduced 2.2 billion rubles, in 2025, 1.7 billion rubles, and in 2026, by 1.2 billion rubles. In addition, financial aid will be reduced for aircraft engine manufacturing enterprises. In 2024, 633 million rubles have been allocated (a 28% reduction), in 2025, 540 million rubles (-39%), and in 2026, 354 million rubles (-60%).

Meanwhile, support for some subprograms is expected to increase, for example, in aircraft construction. In 2024, 15.7 billion rubles will be allocated for this (a 38% increase), in 2025, 13.2 billion rubles. (+21%), and in 2026, 11.8 billion rubles. (+8%). Helicopter manufacturers could receive even more than the plan. In 2024, they would receive 4.4 billion rubles. (+139%), in 2025, 4.2 billion rubles, (+124%), and in 2026, 3.8 billion rubles (+105%).

Russian aviation industry manufacturers are united under the United Aircraft Corporation , which is part of Rostec. In addition to federal subsidies, their projects receive funding from the National Wealth Fund.