Aerospace is one of the Russia's highest value adding manufacturing sectors, with between 275 and 300 aerospace companies.
Aerospace sector in Russia
Aerospace is one of the Russia's highest value adding manufacturing sectors, with between 275
and 300 aerospace companies, including 108 industrial producers, and 111 R&D and design
bureaus. Russian Aerospace industry experiences high level of state involvement and receives
notable investment and support from the Government.
Federal budget spending on a State Programme to develop Russia’s aviation industry is planned
to amount to 1.7 trillion rubles in by 2025, which is stated in the draft program prepared by the
Industry and Trade Ministry.
The Programme envisages that sales of Russian airplanes are to account for 10% of the world
market, while helicopter sales are to account for 27%-30%. The share of domestic components
are to account for at least 70% of the cost of airplane production by 2020–2025.
The Programme is divided into 7 subsectors:
ξ Civil aircraft building,
ξ Helicopter building,
ξ Engine building,
ξ Aviation equipment building,
ξ Aviation aggregates building,
ξ Science and technology,
ξ Automated aircraft.
Governmental investment plans:
ξ МC-21 and SSJ - 1,5-10 bln RUR per year per project up to 2015;
ξ Tupolev-204SМ and Beriev-200 - 37 mln RUR in 2012-2013 and then stop financing the
The key industry players are:
United Aircraft Corporation (UAC) A holding consisting of the leading Russian aircraft design
and manufacturing companies, focused on the country's aircraft output and improving efficiency.
State Corporation Russian Technologies is designed to assist Russian organisations-
developers and manufacturers of high technology industrial products in their development,
production and exports by providing support in domestic and foreign markets and attracting
investments to different industries including defence industrial complex.
One of its aviation assets is Russian Helicopters Holding. The managing body of the
consolidated Russian helicopter industry, incorporates 14 helicopter companies, setting new
standards of competitiveness, efficiency, technology, and profitability.
Central Aerohydradynamic Institute (TsAGI)
TsAGI is the first scientific institution to combine basic studies, applied research, structural
design, pilot production and testing.
The Institute participates in several joint research programs on the development of next-
generation aircraft covering such areas as structural strength, finite element method analysis, and
optimization of structural weight. The next generation of TsAGI aircraft is conceptualized to
have a life of 50,000 - 60,000 flight hours. TsAGI established contacts with a majority of
research and development centers and aircraft manufacturers in Europe, the United States and
Current projects and support
Russian Government has switched its priority to civil aircraft building. A number of indigenous
aircraft programmes are underway or being planned that present opportunities for companies
with contract research and/or consultancy capabilities:
ξ MC-21 (Irkut Corporation, Yakovlev Design Bureau)
ξ Tu 204SM (Tupolev)
ξ Samolet 2020 (Ministry for Industry and Trade, UAC, TsAGI; at a discussion stage now)
Sukhoi SuperJet and МC-21 are predicted to occupy only 6,6% of the world market. To improve
the figure Russian Ministry for Industry and Trade plans to launch a new project “Samolet
2020”. Within the framework of this project it is planned to launch relevant avionics and
business jet programmes alongside. Government plans to invest 120 mln RUR into market
research and 100 mln RUR will be invested into compiling a required technological base for the
project carried out by TsAGI.
The following areas are indicated by key industry players as fields for potential cooperation with
ξ Pre-competition cooperation
ξ “Green” solutions
ξ Innovative sources of energy
ξ for engines
ξ Unmanned aircraft
ξ Composite materials
ξ Quality control in operation
ξ Scientific cooperation
ξ New generation IT technologies
The Russian Helicopter industry is now focused on light weight helicopters, as the Russian
helicopter fleet abandons heavy vehicles and lacks the light ones.
Russian Helicopters is the leading Russian full-cycle designer and manufacturer of helicopters
for civilian and defence markets. The holding actively works with international suppliers and
seeks new partners in the following areas:
ξ Modernization of manufacturing facilities
ξ Engineering service
ξ Complex solutions for projects
ξ Joint R&D
ξ 2-4 TRL level cooperation
ξ Innovative helicopter equipment
ξ Automated control systems
ξ Navigation systems
ξ Flight management systems
ξ Composite technology (not supply)
ξ Search & rescue equipment
ξ Automated control systems
Advanced Composites - Composite materials including power composite machines are in the
focus of Russian Aerospace industry representatives’ attention. New projects emerging in the
Russian Aerospace sector envisage the use of advanced composite materials. UAC has
announced a new $100m JV to manufacture composite wing components in the city of Kazan,
Tatarstan. At the inception phase, the JV would import raw materials for composite components.
Aerocomposite Ltd, created by UAC, deals with design, testing, manufacturing and realisation of
composite parts, aggregates and components of civil aircraft. It cooperates with British
companies and is eager to find new partners.
Ulyanovsk Special Economic Port Zone -Creation of Special Economic Port Zone (SEPZ) can
be of interest for companies who wish to manufacture close to their client or localize in Russia.
The Ulyanovsk region ranks 1st in Russia in civil aircraft manufacturing. Investor support and
international cooperation is welcomed now for the new project-creation of SEPZ.
Benefits for residents:
ξ Exemption from customs duties, VAT and excise taxes; property tax for 5 years; land tax
for 5 years
ξ VAT refund for goods/equipment placed in SEPZ
Profit tax rate reduction to 15.5%
Latest export opportunities – Aerospace
Latest export opportunities - Russia
Getting into the market
ξ Profound market study;
ξ Identify potential local partner/customer;
ξ Identify local/foreign competitors;
ξ Approach with marketing material in Russian;
ξ Visit Russia at least 4 times a year;
ξ Follow up and chase your enquiry as e-mail communication is not widely used.
More about doing business in Russia
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
in country - or contact your local international trade team.
ξ Elena Pashina Trade & Investment Adviser, British Embassy Moscow, Tel: +7 495 956
7229, Email: Elena.Pashina@fco.gov.uk
ξ Olga Makarchuk Team Leader, British Consulate General St.Petersburg Tel: +7 812 320
3223 Email: firstname.lastname@example.org
Contact your local international trade team
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events - Aerospace
Latest events - Russia
UAC Inward Mission to the UK
Russian companies searching for new suppliers
When: November 2013
Aerospace Exchange UK
A Russian industry speaker will be speaking at this event
When: February 2013
Time: 13-18 August 2013
When: 16-18 May 2013
Major Russian Aerospace companies are always represented at international airshows: Paris Air
Show (Le Bourget), Farnborough (UK) and the Dubai Airshow.
More about OMIS and other UKTI services for exporters