Bombardier Inc. T.BBD.A

Translated from Russian - Q-400 postponement

[Finegan]

' _blank='>font>

09/09/2014 9:08 /info-mobile24.ru/wp-content/pictures/98eaa44173b3ec4f6e3eb4022ebb77f2.jpeg" style="margin: 0px; padding: 0px; border: 0px;">

A joint project of the state corporation "Rosteh" and Canadian aircraft manufacturer Bombardier for the production of Ulyanovsk turboprop Q-400 NG capacity of 70-78 seats may be delayed. Decision on the project is not expected until 2015, the newspaper "Vedomosti", with reference to the representative of Bombardier.

"Rosteh" and Bombardier in August 2013 signed a memorandum of intent to establish a joint venture on a parity basis Q400 aircraft manufacturing in Russia. Plant in Ulyanovsk planned to build in 2014, investment in the project had to be worth $ 100 million. In March, Canada joined the sanctions against Russia, and cooperation has stalled, and now does postponed, the newspaper notes.

"We are in the process of discussion with the" Rostehom "and hope to reach an agreement in 2014. But given the context of what is happening now, it seems that the schedule for the project can move to the next year "- the newspaper quoted a representative of Bombardier. According to him, to complete the project, you may need a little more time with the development of the situation and "sensitive political issues."

"Today, there are uncertainties. We have not reached agreement on the issue of the economy, it also applies to the localization of production, and the final value of the aircraft. In this regard, "Rosteh" postponed a final decision on entry into the project, "- said the representative of the publishing corporation. He stressed that "the partners are still interested in continuing cooperation." The representative of Bombardier added that the Canadian company is confident in the economic feasibility of aircraft assembly in Russia.

The memorandum, which is signed "Rosteh" and Bombardier, assumed gradual work. At first, planes were fully collected Bombardier, at Ulyanovsk had to pass only an adaptation technique for a specific customer.Move the assembly of planes to Russia was planned in 2015, in 2016 was to begin localization of components of the airframe.

Close to "Rostehu" a source told the publication that the final decision on the project in 2015, the whole project schedule will move at least a year: build airplanes in Russia will begin in 2016 and localization of components of the airframe - in 2017.

Spring president of Bombardier Pierre Beaudoin told Bloomberg admitted that plans to establish a joint venture in Russia to build the Q-400 aircraft may be delayed because of the events in the Ukraine.

Chapter "Rosteha" Chemezov is involved in the sanctions list, the United States. The Government of Canada at the time refused to follow the American example and not made it to your blacklist. "Our goal - to impose sanctions against Russia, but not so much to punish the Canadian company", - said at the Reuters source close to the government.

Maria Bondarenko

Source: RBC Economics