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June 28, 2022

Russia to invest $14.5bn for local aircraft production

The country aims to manufacture nearly 1,000 new, locally built aircraft for Russian airlines.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict


The Russian Government is reportedly planning to spend RUR770bn ($14.4bn) to increase local production of aircraft amid Western sanctions following its invasion of Ukraine.

By the end of the decade, the country aims to manufacture nearly 1,000 new, locally built aircraft for Russian airline companies, reported Reuters.

It intends to manufacture MS-21 medium-haul aircraft on a large scale, using some foreign components, as well as a few Soviet-designed Tu-214 aircraft.

Since the start of Moscow’s war on Ukraine, many countries, including the US, Canada and the UK as well as other countries in Europe, have closed their skies to Russian airlines.

In March, companies that included Embraer, Boeing and Airbus stopped supplying aircraft parts to Russia. Some countries, including China, also stopped parts supply. Additionally, leasing companies decided to confiscate Russian aircraft.

The plan to produce aircraft domestically is aimed at overcoming these hurdles.

Notably, Russia also passed a law allowing leased foreign aircraft to be registered domestically in March.

Deputy Prime Minister Yury Borisov was quoted by Reuters as saying: “The share of domestically produced aircraft in the fleet of Russian airlines should grow to 81% by 2030.”

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