Russia will invest $ 14.5 billion in the industry

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Russia’s government on Monday announced plans to invest 770 billion rubles ($ 14.5 billion) in the country’s aviation industry by the end of the decade to increase the share of domestically manufactured aircraft, Reuters reports.

Russia’s aviation industry has been in crisis since the West imposed sanctions after Moscow’s invasion of Ukraine, banning Russian airlines from flying to destinations in Europe, the United States and other countries.

Russian airlines have largely halted international flights, after leasing companies said they would confiscate planes under sanctions.

Moscow has passed a law allowing the confiscation of hundreds of planes in response to those sanctions.

Foreign aircraft manufacturers have also stopped delivering new aircraft to Russia, while spare parts for foreign-built aircraft are insufficient.

“The share of domestically produced aircraft in the fleet of Russian airlines should increase to 81% by 2030,” Deputy Prime Minister Yuri Borisov said in a televised meeting of government officials.

Russia has made efforts to develop local aircraft production, but only the Suhoi Superjet regional aircraft is mass-produced inside Russia, while a significant number of its components, including vital engine parts, are imported.

Russia is preparing to mass-produce the MS-21 aircraft, which also has several foreign components. Construction of a small number of Soviet-designed Tu-214s is also expected to begin.

According to the program, Russian airlines should receive about 1,000 new locally built aircraft by 2030.

The Vedomosti newspaper previously reported that Aeroflot, Russia’s largest air carrier, could soon sign a contract with the state-owned United Aircraft Corporation (UAC) for the purchase of 300 new aircraft. None of the companies could be contacted immediately for comments.