Canadian Bombardier Freezes USD 3.4B Plane Contract with Russia

World | March 21, 2014, Friday // 17:15| Views: 3198 | Comments: 8
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Canadian aerospace and rail equipment giant Bombardier plans to build planes in Russia and the sale of USD 3.4B of aircraft will be delayed over events in Crimea.

Canada has joined the US in imposing sanctions against the country after it moved to annex Crimea, Chief Executive Officer Pierre Beaudoin said.

Bombardier signed a letter of intent in August to sell Russia's state-owned Rostekhnologii as many as 100 Q400 turboprop aircraft valued at about USD 3.4B. The Montreal-based company was expected to sign a deal to establish a turboprop assembly line in Russia in 2014.

Like the US and other allies, Canada has imposed financial sanctions and travel bans on Russian officials. Prime Minister Stephen Harper's government has also recalled its ambassador to Russia, suspended military cooperation and pledged USD 220M in financial aid to Ukraine.

Meanwhile, Russian Deputy Prime Minister Dmitry Rogozin expressed his satisfaction with the suspension of Canadian company plans.

"I was not against Bombardier, but we must produce our own aircraft," Rogozin wrote on Facebook, Friday, Interfax reports.

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Tags: Bombardier, Crimea, sanctions, aircraft, Dmitry Rogozin
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» To the forumComments (8)
#8
Vladimir K. - 24 Mar 2014 // 16:50:58

Whoever posted crap using my name below, not only have you insulted Russians, but also the people who died in these air crashes from every nation that once was USSR. This website is starting to get pathetic.

#7
Vladimir K - 24 Mar 2014 // 12:00:14

You're clearly have no real knowledge about reality on this planet. The utter rubbish you mentioned has mainly occured due to heavy drinking and human error. As well as a lack of toilet paper in the post Soviet states as money ran low.

#6
Huib van den Doel - 22 Mar 2014 // 16:25:02

At first sight, it looks like Bombardier is doing something for which EU-politicians lack the spine. But I wouldn't be surprised if they already had developed doubts about investing in Putania, and see this as a graceful way out. Maybe they have learned from the experience of Shell, BP and others who found to their peril that you can't rely on contacts with Russian firms, especially if government is a stakeholder, an that the judiciary are on the end of a telephone line....

#5
Peter7260 - 22 Mar 2014 // 16:04:31

Looks like we are loosing 3.4 billion $ and no doubt jobs,the question is;who is the looser?

#4
Vladimir K. - 22 Mar 2014 // 10:01:57

You're clearly have no real knowledge about reality of Soviet aviation. The Tu154 you mentioned have mainly losses due to weather and human error. As well as a lack of maintenance in the post Soviet states as money ran low.

#3
Benkovski - 22 Mar 2014 // 09:52:44

Thanks for making my day

Hopefully the will build plane's which dont fall from the sky like the tu154
Keep dreaming Vladi

#2
Cosmonaut - 21 Mar 2014 // 23:46:00

Instead of flying, Putin prefers his people to walk on four legs. This is called "devolution".

#1
Vladimir K. - 21 Mar 2014 // 21:55:16

Idiots... Loosing money on both sides of the parties.

Although, Tu-154 might enter production again, Il-96, Tu204, SSJ 100s might roam the skies of Rossiya very very soon ;)