State budget allocates USD 43 mln for An-70

Ukraine’s 2012 state budget set aside USD 43 mln (UAH 347 mln) to fund development of the An-70, a four-engine medium range military transport aircraft jointly produced by Russia and Ukraine, a Ukrainian defense ministry official said yesterday (via Interfax). The Ukrainian defense ministry first announced that the 2012 budget would include funding for the An-70 in September 2011; last year’s budget did not allocate any money for development of the An-70.

Roman Dmytrenko: Production of the An-70 has been on hiatus due to a lack of financing from the Ukrainian side of the partnership. The producer of engines for the An-70 is Motor Sich (MSICH UK). Last summer the Russian Defense Ministry said it could purchase up to 60 An-70 aircraft by 2020. If executed in full, this contract implies Motor Sich could deliver up to ~300 D-27 engines, which would translate into about USD 1.1 bln in revenues in 2013-2020.