Boeing Russia boss says projects unaffected by U.S. sanctions
10/08/2006 16:12 MOSCOW, August 10 (RIA Novosti) - Sanctions imposed by the United States against two Russian companies will hardly affect deals with Russian titanium producers and a SuperJet project involving Boeing, the head of the U.S. giant in Russia said Thursday.
The U.S. State Department announced August 4 that two-year sanctions had been imposed on aircraft maker Sukhoi and arms exporter Rosoboronexport over their cooperation with Iran and alleged violations of non-proliferation commitments.
"We are continuing to study the legal aspects of the sanctions imposed by the U.S. government," said Sergei Kravchenko, president of Boeing-Russia/CIS.
The U.S. sanctions against Rosoboronexport might mean Boeing will face problems in relation to titanium supplies from Russia's Vsmpo-Avisma, whose controlling stake will be sold to Rosoboronexport in the near future. The multibillion-dollar contract between Boeing and the Urals-based company, which controls a third of the world's titanium market, should run for several years and plans for a joint venture were even mooted.
Kravchenko was upbeat, saying, "we believe Boeing's cooperation with Russian titanium producers and our joint work with Sukhoi Civil Aircraft on the SuperJet-100 program will be unaffected by the sanctions."
"Boeing will maintain close contacts with the U.S. Department of State ... to meet all the requirements of U.S. legislation while operating in Russia," he said.
Kravchenko said last month the U.S. giant's ambitious Boeing 787 Dreamliner project could be called a joint project with Russia as titanium parts would account for 20% of the plane's take-off weight and its titanium frame and parts would be made by Vsmpo-Avisma.
Sukhoi's ambitious project to build the Russian Regional Jet, renamed the Sukhoi SuperJet-100 recently, has been implemented in cooperation with Boeing and a series of other foreign companies. The RRJ market until 2023 is estimated at 5,400-5,600 units, and is valued at $100 billion.
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