International Cooperation in Russian Civil Aircraft Industry under Sanctions

DOI: 10.20542/0131-2227-2018-62-8-88-96

M. Yevtodyeva (,
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation;
I. Danilin (, 
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation 

Acknowledgements. The article was prepared at the Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences and supported by a grant from the Russian Science Foundation (project no. 14-28-00097 “The optimization of Russian foreign investment ties under deterioration of relations with the EU”).

Abstract. The article analyzes the dynamics of internationalization in the Russian aircraft industry over the last decade (2008–2017) using the examples of implementation of the Sukhoi Superjet and MS-21 projects within two periods – before and after the introduction of economic sanctions against the Russian Federation in 2014. The authors examine such key elements of international cooperation in civil aircraft industry as cooperation with foreign suppliers in parts and components, export deliveries to foreign airlines, cooperation in R&D, sales and after-sales services. Since 2014 each of these areas witnessed either the same persisting problems which continue to exert negative impact on the prospects of sales (especially those in repair and after-sales services), or new challenges (decline in supplies of components to foreign customers, revision of some contracts’ terms). An important part in analysis is the study of investment mechanisms in the Russian aircraft industry, including foreign investments. The authors conclude that target public financing still maintains a high share in the structure of investments in aircraft industry, whereas the share of direct foreign investments has reduced in recent years. Evidently, sanctions slowed down internationalization of the Russian civil aircraft industry. They negatively affected the relations with key foreign partners, including major suppliers and customers, as well as the largest aircraft producers. Import substitution in the Russian aviation industry is developing. However, it faces difficulties due to the need to replace a considerable number of components in different aircraft models and, consequently, to pass expensive certification of new systems and components. According to the authors, the development of the Russian civil aircraft manufacturing under Western sanctions can be ensured by generation of effective business strategies (by UAC and its constituent companies) in order to increase efficiency of funding mechanisms, sales promotion and after-sales services. 

Keywords: Russia, sanctions, aircraft industry, international cooperation, United Aircraft Corporation, Sukhoi, foreign suppliers, foreign investments, import substitution 


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For citation:
Yevtodyeva M., Danilin I. International Cooperation in Russian Civil Aircraft Industry under Sanctions. World Eсonomy and International Relations, 2018, vol. 62, no. 8, pp. 88-96.

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