MSICH helicopters join Ukraine development plan

The Ukrainian government included Motor Sich’s (MSICH UK) development and production of light MSB-2 helicopters into its 2013-14 economic development program, Interfax reported on March 25. They are analogues of Russia’s Mi-2 helicopter, with a maximum take-off weight of four tons. The program stipulates production of up to 100 units of the MSB-2 copters during a two-year period, half of which are planned for export. Motor Sich plans to finance the project with UAH 109 mln in own funds or debt that will be guaranteed by the state.

Roman Dmytrenko: Considering that Motor Sich has a sufficient cash position (negative net debt of UAH 375 mln as of Sept. 30), we see no particular benefits to the company attracting UAH 109 mln in publicly guaranteed debt. In our view, the plan is missing a crucial part – guarantees that the Ukrainian government will actually purchase the helicopters produced by Motor Sich.