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. Last Updated: 07/27/2016

Russian Jet Venture Gets U.S. Insurance

WASHINGTON -- A U.S. government agency has announced it will insure an American firm against damage from war, revolt, and political violence in its effort to help improve a Russian aircraft engine. The Overseas Private Investment Corp. announced Wednesday that it will provide $200 million of "political risk" insurance to Pratt and Whitney, which is part of United Technologies Corp. Pratt and Whitney will go into a deal to work on the engine used in Tupolev and Ilyushin aircraft with Germany's Motoren und Turbinen Union GmbH. They will collaborate with two Russian firms, Perm Motors and Aviadvigatel. This engine is already cheaper than Western engines, and the redesign aims to make it run on less fuel and require less maintenance. The engine is not expected to compete with engines made in the West but could be sold in India, and in some Latin American, former Soviet and East European countries that operate Russian-built planes.