Ukraine Looking For New Partners In The An-70 Project.

After the Commander in Chief of Russian Air Force said on Wednesday that Russia does not plan use the An-70, Ukraine’s Economy Minister Arseniy Yatsenyuk suggested replacing Russia for another partner. The same opinion was voiced yesterday by Anatoly Kinakh, Ukraine’s secretary of the National Security and Defense Council. Yatsenyuk views Boeing and Airbus as potential partners, nevertheless, no clear offers have been made yet. Kinakh says the issue should be negotiated during a meeting of the Yushchenko-Putin commission, which he hopes will take place in April-May. Presently the Kyiv aviation plant “Aviant” is assembling five An-70 planes for Ukraine’s Defense ministry. According to inter-governmental agreements between Ukraine and Russia, signed in 1993 and 1999, the An-70’s design was ordered by the defense ministries of Ukraine and Russia. Ukraine has accused Russia of under-financing its ~80% of the project. In 2008 Ukraine plans to launch a commercial version of the plane, the An-70-100. Concorde Capital: Motor Sich (MSICH: BUY) must be watching this saga with baited breath, the revival of the problematic An-70 project would bring additional orders to MSICH.