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. Last Updated: 07/27/2016

EBRD Plans Loan to Sukhoi

The European Bank for Reconstruction and Development plans to lend $131.3 million to help Russia make a new commercial jet that is aimed at restoring the country as a global aerospace player.

The EBRD board will consider the loan for Sukhoi Civil Aircraft, a subsidiary of Sukhoi Holding better known for its fighter jets, on Dec. 12 at its board meeting, the London-based bank said in a statement on its web site today. The funds will be used to buy equipment and help upgrade Sukhoi's production facilities.

At a total project cost of $1.6 billion, Sukhoi's SuperJet-100 is Russia's effort to regain its position in the global aerospace market. The 75- to 95-seat SuperJet-100 is scheduled to enter service in late 2008, with the first deliveries to Aeroflot, Eastern Europe's biggest airline.

Sukhoi forecasts sales of 1,000 of the planes by 2023, most of them outside Russia. The model will compete with aircraft made by Empresa Brasileira de Aeronautica of Brazil and Bombardier of Canada.

Safran's Snecma unit, Europe's second-biggest plane-engine maker, one of the international partners in the SuperJet-100, will supply SaM-146 engines to power the plane. Boeing, the world's second-largest maker of commercial jets, is a consultant to Sukhoi on the project.

Last week, the United States lifted sanctions on Sukhoi, Foreign Minister Sergei Lavrov said.

The United States imposed the measures on the two companies in August for allegedly violating the U.S. Nonproliferation Act of 2000, which aims to keep Tehran from acquiring weapons of mass destruction.

(Bloomberg, AP)