Bombardier has shelved plans to form a joint venture in Russia with state-owned industrial and defence firm Rostec, to manufacture its Q400 turboprop airliners.
The proposed plans have been suspended due to political and economic tensions in the region following Russian military actions in Ukraine.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Rostec and Bombardier have been in negotiations over a new assembly line and sale of 100 aircraft in the country.
Bombardier CEO Pierre Beaudoin was quoted by Bloomberg as saying: "Given the political situation now, the situation of the Russian economy, we are putting the project aside for now and we’ll see how things evolve over the next few months.
"We are looking at other ways to penetrate the market.
"They need a plane like the Q400, so we are continuing talks to sell the Q400 in Russia."
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBombardier, Rostec and Ilyushin Finance have signed a series of deals last year for around 100 Q400 NextGen turboprop airliners with plans to conclude the agreement in 2014.
However, sanctions imposed by the European Union, the US and Canada over Russia over Ukraine conflict have forced the parties to postpone their plans to 2015, reported The Wall Street Journal.
As of September-end, Bombardier delivered 17 Q400s and had 43 on outstanding orders.
For the third quarter ended 30 September, Bombardier generated revenues of $4.9bn, compared with $4.1bn a year ago, with adjusted net income of $222m.
Image: Bombardier had planned to build assembly line in Russia to manufacture Q400 turboprop airliners. Photo: courtesy of Bombardier.
