Russia ramps up investment in domestic aircraft industry and long-term modernization

In 2023, Russian authorities announced a bold plan to invest heavily in domestic aircraft manufacturing, setting aside 5 billion rubles to accelerate development of the national aviation sector. During a high-level meeting with deputy prime ministers, the Prime Minister of Russia, Mikhail Mishustin, outlined the strategic push to strengthen industrial capabilities at home.

Mishustin stated that factories already producing aircraft and their engines, along with the essential tooling and assemblies, must be upgraded rapidly. He emphasized that, on behalf of the head of state, the government would commit 5 billion rubles to fund this expansive modernization program. The objective is to modernize production facilities, streamline supply chains, and lift overall equipment readiness to support increased output and reliability.

Looking ahead, Mishustin indicated that starting in 2024 the government would earmark dedicated resources for ongoing modernization across the aviation sector. This planned funding is part of a broader strategy to preserve domestic manufacturing capacity, reduce dependence on external suppliers, and create a resilient, self-sustaining industrial base capable of meeting future demand within the country.
The government envisions substantial long-term support, with total financing for the aviation industry projected to reach up to 376 billion rubles over the next fourteen years. Such support is designed to help aviation companies manage loan repayments and interest, thereby accelerating the deployment of upgraded equipment and expanding production capabilities. The aim is to ensure a steady transition from legacy systems to modern, efficient aircraft production lines that can operate under varying economic conditions.

On another front, Sergei Ivanov, the Special Representative of the President for Environmental Protection, Ecology and Transport, commented that Russia is poised to enter serial production of civil aviation aircraft within a few years. He noted a strategic shift away from relying on imports and leasing arrangements as the main support for national airlines. The former approach, he argued, did not yield the desired level of domestic independence and became more vulnerable under Western sanctions. Ivanov stressed that strengthening domestic engineering and manufacturing is essential to maintaining a robust, autonomous aviation sector capable of serving both commercial and national needs.

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