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Mikhail Mishustin: Good afternoon, dear friends!

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Meeting on the development of civil aircraft construction and renewal of the civil aviation fleet

I am glad to welcome you all. Today we are at the site of the Voronezh Aviation Plant. Here, at my invitation, are the heads of the country’s largest corporations and holdings that participate in cooperation programs to create modern aircraft. This is a good opportunity for all of us to talk in detail about the current state and development prospects of the aircraft industry. This instruction was given to us by the President, who held a number of industry meetings to implement key projects in this area. He repeatedly spoke about the need to link the territory of the country and, of course, first of all, to provide our citizens with high-quality aviation services using aircraft produced in the country.

When traveling around the country, we often visit airlines. I myself visited a number of the most important factories and aircraft manufacturing enterprises. We are looking into the current situation on the spot. Last year we visited the leading production sites of the industry – this is Komsomolsk-on-Amur, Irkutsk, Ulyanovsk, Yekaterinburg. We are in Kursk looked at the most modern means of avionics. Today I saw the head of the Kursk plant. He reported at the exhibition about the progress that is. In December we were Perm, where they discussed the development of gas turbine engine building. All necessary resources have been allocated to complete the entire line of engines, including high thrust engines for wide-body aircraft. And today we are completing this cycle of work. We must not only form a complete picture of the state of affairs in this area, but also decide on the short and long-term prospects for the industry.


We have just looked at the latest achievements of modern domestic industry. Including a number of innovative solutions in the field of supersonic passenger technology. These are breakthrough technologies that in the near future will radically change, in my opinion, the ideas of mankind about the quality of flights.

Developers and manufacturers of Russian aircraft are doing extensive work in the field of on-board systems and equipment that meet the most modern requirements, and have made significant progress in this direction. Today we have seen a whole range of innovative solutions that we would not even think of about five years ago.

It is important to ensure complete technological independence from the use of imported products, from foreign materials and components that do not yet have domestic analogues. Solving this problem will allow us to remove possible risks for the development of this important industry for the country, to eliminate delays in bringing new generation aircraft to the market. And also to prevent further production failures due to unfair competition from some foreign companies, as, for example, it happened several years ago when they introduced trade restrictions on the supply of composite materials to us for the wing of the latest medium-haul domestic aircraft MS-21, which we have now seen. We have learned how to make them ourselves, and today we confirm that what we do is, in a number of parameters, better than foreign analogues that were used before full import substitution.

The head of state considers the sustainable development of civil aircraft industry as one of the most important priorities for our country. On behalf of the President, we approved a program of state orders for domestically produced aircraft until 2030. This is a significant mechanism for supporting the industry. The document provides for the supply of 583 modern aircraft, including for regional transportation. Over 45.5 billion rubles have been allocated for their construction in the three-year budget. But, of course, state corporations and air carriers will expand their fleet using both their own funds and borrowed funds, including raising funds from the National Welfare Fund for this.

Within three years, they will be able to receive up to 279 billion rubles from the NWF. These resources will be allocated at a preferential rate of 1.5% per annum for up to 20 years. This is the most important long money for the formation of the state order.

The state order will ensure, first of all, the rhythmic loading of enterprises in an unstable market, high volatility – at a level of at least 50%. It will help to significantly reduce production costs by increasing the volume of serial production.

We expect that the pace of construction of civil aircraft in five years will exceed 100 pieces of equipment per year. This will allow the United Aircraft Corporation to increase the share of high-tech products to 50% by 2030. As you remember, this instruction was given to us by the head of state.

Of course, it is important that Russian aircraft be reliable and competitive. This is another one of the strategic tasks that was set before us by the President. The necessary funding is allocated. Within the framework of the state program “Development of the aviation industry”, more than 122 billion rubles are provided in the three-year federal budget. Separately, about 112 billion rubles are planned for R&D. These are the funds of the state program “Scientific and Technological Development”.

Our goal is to increase the share of domestic aircraft in the fleet of the country’s largest air carriers to at least 30% over the next nine years. It is important that promising Russian developments have a very good potential. Today at the exhibition we spoke with engineers and employees of our scientific institutions. A very large backlog has been made. And we, of course, expect, among other things, to enter the world market.

In order to speed up the work on their creation, the mechanisms of advanced financing of the civil aircraft manufacturing sector are actively used.

In December last year, the Government allocated more than 60 billion rubles for the implementation of the MS-21 program and the creation, first of all, of its after-sales service system, this is very important, after-sales service. Also, over 44 billion rubles were allocated for the development of a promising super-high thrust engine PD-35. We made this decision in Perm in December. In the near future, we will allocate an additional 2 billion rubles for the implementation of two more significant projects. One of them is a new wide-body long-range aircraft. And the second is our regional Il-114-300, which is also being created on behalf of the President. It should replace obsolete An-24 aircraft on our local airlines.

Dear colleagues!

It is very important to maintain Russia’s status as a world aviation power. Modern aircraft are needed to ensure the transport connectivity of all regions of our large country, which the President has repeatedly told us about. In addition, the aircraft manufacturing industry is a science-intensive production with a fairly high added value, it forms growth points, stimulates the development of related industries, and also helps create thousands of new jobs in the regions. I will give one example. Only within the framework of the implementation of the MS-21 program is it expected to hire additionally – attention! – more than 25 thousand highly qualified specialists in Irkutsk, Ulyanovsk, Kazan and, of course, Voronezh.

I propose now to discuss in detail the progress of the implementation of key aviation projects, to consider the main difficulties that the industry is facing, including the identification of possible risks that may be encountered in aircraft development and production programs.

I repeat, please pay special attention to the issues of import substitution. I know – we are talking with engineers, with managers: this work is complex, high-cost. Joint efforts of industrial enterprises and the necessary state support will be required. And, of course, we need to discuss what needs to be done to reduce the cost of import-substituting components and increase their reliability.

I propose to proceed to the discussion and I would like to give the floor to the Deputy Minister of Industry and Trade Oleg Evgenievich Bocharov. Please, Oleg Evgenievich.

To be continued…

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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