Russian Defense Ministry orders 1,124 helicopters by 2020

Russia’s Defense Ministry placed an order for 1,124 helicopters from Russian producers by 2020, the deputy minister said yesterday (via Interfax). He indicated additional orders could be made depending on needs.

Roman Dmytrenko: The announcement is encouraging for Ukrainian engine producer Motor Sich (MSICH UK), which historically has been the main supplier of helicopter engines to Russia. The company already signed a USD 1.2 bln five-year contract to supply 1,300 TV3-117 series engines for commercial helicopters to Russia back in November 2011 (see our news dated November 14, 2011), while the volume of this potential order for military-purpose helicopter engines has not been disclosed yet. The production of 1,124 helicopters would require about 2,400 engine sets by 2020 (or 260 units per year). Based on the order for commercial helicopters, military engine supplies could secure steady annual revenues for Motor Sich of up to USD 240 mln per year (USD 2.2 bln for the whole period) if all engines are produced by Motor Sich.