Canadian Bombardier Freezes USD 3.4B Plane Contract with Russia
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.
- » Mark Zuckerberg Hearing at the European Parliament Today (Live Stream)
- » There were no Injured Bulgarian Soldiers in a Missile Attack in Kandahar
- » The 16th Richest Countries in the World
- » The US-China Trade War Is Postponed
- » Oil Prices Sharply Increased the Reason for This Is the Threat of the United States to Impose New Sanctions on Venezuela
- » Chelsea Owner Roman Abramovich has to Prove the Origin of his Money to Obtain a British Visa
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....