Russia to invest $14.5bn for nearly 1,000 new 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 government of Russia 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.

Amid increased pressure and urgency around climate change, how can energy operators in the Middle East better measure emissions and help lead the decarbonisation agenda?

Given the scale of global greenhouse emissions and the intractability of fossil fuel use from industry performance, businesses within the oil and gas sector must collate and pinpoint exact areas for improvement, building a bridge between intention and action.

The oil and gas industry is responsible for approximately 10% of direct and 40% of indirect global greenhouse gas emissions, according to a report from McKinsey & Company. At COP26, more than 450 businesses from across the finance sector, collectively worth $130trn, committed to pledge funds to reach net-zero carbon emissions by 2050, putting increased pressure on the energy sector to improve performance, as investors increasingly seek to divest from fossil fuel assets.

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.

Amid increased pressure and urgency around climate change, how can energy operators in the Middle East better measure emissions and help lead the decarbonisation agenda?

Given the scale of global greenhouse emissions and the intractability of fossil fuel use from industry performance, businesses within the oil and gas sector must collate and pinpoint exact areas for improvement, building a bridge between intention and action.

The oil and gas industry is responsible for approximately 10% of direct and 40% of indirect global greenhouse gas emissions, according to a report from McKinsey & Company. At COP26, more than 450 businesses from across the finance sector, collectively worth $130trn, committed to pledge funds to reach net-zero carbon emissions by 2050, putting increased pressure on the energy sector to improve performance, as investors increasingly seek to divest from fossil fuel assets.

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.” airport-technology.com