MiG Will Hardly Reach UAC in Near Term, United Aircraft Corporation (UAC)

Release Date: 2008-11-24

The entry of Russian Aircraft Corporation MiG (RSK MiG) into United Aircraft Corporation (UAC) will be probably postponed for a year and a half, till MiG’s rehabilitation is completed. Nowadays, UAC and Industry and Trade Ministry are negotiating with Finance Ministry and the state-controlled banks about appropriating the 20-billion ruble subvention to RSK MiG, which debts amount to 40 billion ruble.

The fact that RSK MiG’s takeover by UAC could be shelved for a year and a half, i.e. till the reorganization of the enterprise is finally completed, was unveiled by a source in profile ministry. “The scenario is being discussed in the government. UAC CEO Alexei Fedorov and Industry and Trade Ministry are in talks with Finance Ministry, Vneshekonombank and Sberbank about appropriating to RSK MiG one-time subventions in the amount of roughly 20 billion ruble.”

People in UAC confirmed that the integration will be probably put off. “The financial situation at MiG is tense indeed. Although formally RSK isn’t a part of UAC yet, we have settled down to solving the problem, in particular, we are negotiating financial recovery of the enterprise with the government’s bodies. Various variants of MiG’s entry into UAC are being elaborated, both before and after its rehabilitation,” said Konstantin Lantratov from UAC.

Chief of Sukhoi Holding Mikhail Pogosyan has stepped in to help sort out the difficulties, according to Lantratov. Pogosyan is expected to head MiG once it becomes a portion of UAC and the sources say that, amid other things, he conditioned the future appointment to the state support rendered to MiG.

SOURCE: kommersant

Type:	NORMAL
Company:	United Aircraft Corporation (UAC)