Page 89 - RUSRptSept18

9.1.3 Aviation sector news
Russia to restructure and its civil aircraft company from the military arm to protect it from sanctions and sell to investors. The Russian government intends to restructure its civil aviation construction company United Aircraft Corporation (UAC), cutting it out into a stand alone legal entity that will be then sold off to private investors, Vedomosti reported on August 15. Currently UAC is controlled by Sukhoi that makes both military fighter jets and civil aviation passenger planes. UAC was the brainchild of businessman Alexander Lebedev, who suggested the idea to president Vladimir Putin, but was not involved in what became the template for the reorganisation of Russia’s civil aviation reform. Over the next year UAC will be separated into four divisions: civil aviation, military aviation (fighter production), transport and special projects (bombers). By the end of next year the civil aviation part will be trnasfered to a new legal entity and shares will be offered to investors, according to UAC President Yury Slyusar speaking to Vedomosti. "We assume that our strategic financial partners will participate in the capital of the civilian daughter company," Slyusar told the Russian daily, suggesting the first buyers of the new company’s shares will Russia’s leading state-owned banks. Three people close to the UAC said that the state-owned banks or their structures will receive a controlling stake in the new civil aircraft building company and the share of UAC will be below 50%, the paper reported. The goal of the restructuring is to remove the civil part of Russia’s aviation construction business from association with the military part that are increasingly being targeted by US sanctions.
In October, the British agency Skytrax will conduct a rating of the Sheremetyevo airport , which wants to score the highest rating of five stars. The airport is actively investing to meet the company’s recommendations to get the upgrade. Investments in the implementation of recommendations will amount to about RUB500mn, the airport told Vedomosti first deputy director of Sheremetyevo, Andrei Nikulin. Skytrax evaluates the level of service of airlines and airports. The highest rating is for nine airports, eight of them are Asian (including Baku airport) and only one European airport in Munich. So far, no one Moscow airport in Skytrax has been ranked.
9.1.4 Construction & Real estate sector news
Government narrows down infrastructure projects. The government has developed a procedure for selecting infrastructure projects to implement Putin’s May decrees. Nearly half of previously announced projects have been cut after the first stage of selection. More cuts are to come. Costs for projects
89 RUSSIA Country Report September 2018 www.intellinews.com