Canadian Bombardier Freezes USD 3.4B Plane Contract with Russia

World | March 21, 2014, Friday // 17:15

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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