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rose 31.5% y/y to RUB134.7bn. Avtovaz has been in red since 2012, when it made net profit of RUB29.2bn. The company managed to turn profitable on the operational level in 2017 and made a net profit of RUB609mn in 1Q18 . For January-June the positive results of Avtovaz were attributed to strong Lada flagship model sales on Russian market (up by 21% to 0.17mn units), including due to state-led programs of demand support, as well as higher exports (up by 61% to 0.019mn units), and ongoing cost-cutting measures. In April Avtovaz completed the second stage of a $1bn recapitalization by its main shareholders, French car major Renault and state technology agency Rostec. The recapitalisation of Avtovaz has been on agenda since 2016 and its completion marks the support of Renault to Avtovaz throughout the crisis and now counts to see its money's worth on the recovering Russian car market. Avtovaz already was a top car seller in 2017 domesticall y. Both shareholders converted a total of RUB61.4bn ($1bn) or RUB30.7bn of debt each into shares of Avtovaz, issued in a closed subscription. As a result, the joint venture of Renault and Rostec Alliance Rostec Auto B.V. increased its stake in Avtovaz from 64.6% to 83.5%.
9.2.3 Aviation corporate news
Aircraft manufacturing major Boeing will spend $27bn on direct purchases in Russia in the next 20 years , the head of the company in Russia and CIS Sergei Kravchenko told the press as cited by Tass on April 18. Reportedly out of that $18bn will go on titanium purchases. In April the Russian government decided to leave Boeing and Airbus out of the counter-sanctions revised by the parliament so as not to include any limitations on exports of titanium "Why would be take decisions negatively affecting our producers, our companies," Russia's Minister of Industry and Trade Denis Manturov asked, referring to Russia's only titanium producer VSMPO Avisma, which is one of the world’s largest. Avisma produces up to 40,000 tonnes of titanium annually, out of which 70% are exported. Boeing has a contract with the company until 2022. Among Avisma's largest clients are Boeing (35% of titanium used supplied from Russia) in the US and French Airbus (65% of titanium supplied from Russia). Other buyers include Rolls-Royce, Snecma, and Russian subcontractor Ural Boeing Manufacturing.
Russia is working on developing a super-heavy plane to replace the Antonov An-124 cargo aircraft . The work on developing a super-heavy plane to replace the Antonov An-124 Ruslan cargo aircraft has been included in the state armament program through 2027, Russian Deputy Prime Minister Yuri Borisov said on July 30. " The R&D work on the plane is in the plans at the end of the state armament program," Borisov said, replying to the corresponding question. The An-124 Ruslan is a Soviet and later a Ukrainian heavy long-range turbojet transport plane with a maximum lifting capacity of 120 tonnes. It develops a maximum speed of 865 km/h and has a flight range of 4,800 km at full load. According to open sources, the Russian Aerospace Force currently operates nine An-124 planes and 10 more Ruslan aircraft are used in Russia’s Volga-Dnepr airline. In September 2015, Ukraine’s Antonov State Company withdrew from the United Aircraft Corporation - Antonov Russian-Ukrainian joint venture, which created serious difficulties for the Volga-Dnepr airline with the extension of the cargo plane’s service life and its maintenance.
Pobeda, the low-cost subsidiary of Russian national air carrier
74 RUSSIA Country Report August 2018 www.intellinews.com