Draft budget for 2012 includes UAH 600 mln in support for aviation industry

The Ukrainian government’s draft budget for 2012 plans to allocate UAH 600 mln to support the aviation industry, Interfax reported on Friday. The draft also provides for both direct support and loan guarantees for the production of aircraft, helicopters and engines. The current budget draft has been approved by the Cabinet of Ministers, but still requires the approval of parliament. Vitaly Gorovoy: We view the UAH 600 mln figure as tiny and neutral for the only listed producer in the industry, Motor Sich (UX: MSICH UK, BUY); the government allocated UAH 500 mln in 2009 for the aviation industry, and UAH 559 mln in 2008, but no aircraft were produced in Ukraine in either of those years. In 2010-2011, the budget did not provide for any additional support for the Ukrainian aviation industry.