# Presentation: 754405

## Dorothy L. Lutter

**U.S. Commercial Service in the Russian Federation**

- Aircraft & Parts Market in Russia** **

***Dorothy L. Lutter***
***Senior Commercial Officer***
***U.S. Commercial Service***
***U.S. Embassy - Moscow***

## Russia’s Distinctive 

**Russia’s Distinctive **
**Aerospace Market**

**Military or Dual-Use Technologies**
**Demand for Western Civil Aircraft**
**Domestic Manufacturing Sector**
**Opportunities for Exports**

## Military Sales

**Both U.S. Export Controls and host-country laws and regulations apply to sales of U.S. components to be used in Russian military aircraft**
**Russia is a leading exporter of military aircraft and provides equipment to many countries with their own special requirements and restrictions**
**U.S. Sanctions on the sole Russian exporter of military aircraft complicates sale of components for re-export**

## For more detailed information, Please Contact:

**Office of Export Control Cooperation, Nonproliferation Bureau **
**U.S. Department of State**
**Washington, D.C. 20520**
**+(1) (202) 647-0224**

**Further Assistance**

## Demand for

- Civil Aircraft

**Russia boasts some 180 airlines -  the top 25 control about 90% of the total market**
**75% of all flights use outdated Soviet aircraft; 18% Western aircraft; and only 7% new Russian-made aircraft **
**Currently, Russia’s fleet numbers around 675 civil aircraft - of which 500 will be scrapped by 2012 **
**Demand for air carriage is expected to grow 7% annually over the next 20 years -  this will require a minimum of ****1,500 new aircraft.**** Leasing is growing fast**
**Russia’s aviation industry currently produces around 10 civil aircraft per year**

## Factors Affecting Sales of Aircraft

**20% Import Duties + 18% VAT**
**WTO Bilateral Agreement offers hope for improvement**
**GOR emphasis on development of domestic aviation industry**

## United Aircraft Corporation

**UAC established by Presidential Decree in 2006 **
**  ****following several delays**
**Institutional issues still must be resolved**
**Strategic plan (research and targeted investments)**
** ****still to be developed**
**GOR pursuing increased involvement of Western aircraft and component manufacturers**
**SuperJet 100 is one bright spot**

## Sukhoi SuperJet 100 Significant U.S. Content

**Boeing (Design and Marketing Support)**
**Honeywell Aerospace (Auxiliary Power Systems)**
**Goodrich (Wheels and Brake Systems)**
**Hamilton Sundstrand (Electrical Supply Systems)**
**B/E Aerospace (Engine Management Systems)**
**Autronics (Fire Suppression System)**
**Bigelow Aerospace (Interior Design Components)**
**Parker Aerospace (Hydraulic Systems)**** **

## Avionics Systems

**Opportunities for Sale of Components**

**Avionics Systems**
**Safety Equipment and Systems**
**Entertainment Equipment and Systems**
**Design and Engineering Support Equipment and**
** ****Services**** **

**(Upgrades, Retrofits, and OEM)**** **

## MAKS 2007

**MAKS 2007**
**Zhukovsky Research Center, Moscow**
**August 21- 26, 2007**
**For Further Information**
**Commercial Officer Mark O’Grady**
- _[mark.ogrady@mail.doc.gov](mailto:mark.ogrady@mail.doc.gov)_
**or visit our website**
- _[www.buyusa.gov/russia/en/maks.html](http://www.buyusa.gov/russia/en/maks.html)_

**Upcoming Events**

## For Further Information

## Thank You 

**U.S. Commercial Service in the Russian Federation**

*Thank You*** **

***Dorothy L. Lutter***
***Senior Commercial Officer***
***U.S. Commercial Service***
***U.S. Embassy Moscow***