Foreign Interest in Aircraft Enterprises to Be Fixed by President

Russia’s State Duma passed in the second reading yesterday the amendments to the Act on the State Control of the Aviation Development, which still limit the share of foreign capital in the aircraft enterprises of Russia to 25 percent. The novelty is that President Vladimir Putin may lift the restrictions and meet the hopes of state-run Sukhoi Aircraft Holding. The latter intends to sell 25 percent in Sukhoi Civil Aircraft to Italian Finmeccanica.
On Wednesday, the State Duma of Russia passed in the second reading the bill that relates to foreign interest in the stock capital of Russia’s companies involved in developing, constructing, testing and repairing aircraft facilities. The legislators voted for keeping the 25-percent ceiling for such interest, but specified that the president may change the actual size of the stake in each definite case.

The sources say exactly President Putin urged the State Duma to focus on amendments. Past summer, Russia’s Sukhoi and Italian Finmeccanica sealed a strategic partnership agreement to create Sukhoi Superjet100 (previously called RRJ). Under the agreement, Finmeccanica’s subsidiary, Alenia Aeronautica, will buy out 25 percent plus a stock in Sukhoi Civil Aircraft and take part in funding the RRJ project.

The State Duma is likely to pass the bill in the third reading by October 13. Its approval by the Federation Council and signing into law by President Putin will enable Sukhoi to seek the president’s sanction for selling to Italians more than 25 percent in the subsidiary.
Source : www.kommersant.com - Oct. 05, 2006