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Russia to invest $2.4bn in aviation in 2013
July 31, 2013, 2:12 pm

[Government Press Office]

The prime minister ordered the construction of an aircraft manufacturing plant in Kazan in June [Government Press Office]

Russia’s aviation development plan for 2013-2015 has been approved by Prime Minister Dmitry Medvedev as the government seeks to make the industry more competitive in the international market.

Investment in the aviation industry will amount to 78.3 billion rubles ($2.4 billion) in 2013, 107 billion rubles ($3.3 billion) in 2014, and 123.5 billion rubles ($3.8 billion) in 2015.

Additional sources of funding for the sector include two special federal programmes.

“Since Russia’s accession to the WTO, the government can directly finance producers of aviation industry. And most likely United Aircraft Corporation will start to pay for superjets,” Yuriy Zaharchenko from Russia’s Central Aerohydrodynamic Institute told The BRICS Post.

“The money is most likely to be spent on realisation of the Irkut MS-21 [“Airliner of the 21st Century”] and a range of Aircraft-2020,” Zaharchenko added.

The programme is also expected to triple the output of the country’s aviation manufacturing in the international market, both civil and military.

Medvedev ordered the construction of an aircraft manufacturing plant in Kazan in June.

Russia’s largest passenger carrier Aeroflot is working on the establishment of low-cost airlines by 2014.

Domestic travel is also a promising sector for Russia’s aviation industry, where many destinations are still only reachable via Moscow.

By Daria Chernyshova in Moscow, Russia for The BRICS POST