Page 111 - RusRPTAug21

trillion ($24bn) support package for domestic aircraft engineering and construction industry, which could be financed mostly from the National Welfare Fund (NWF) at RUB1.6 trillion, Kommersant daily reported citing the unpublished draft of the document.
As followed by bne IntelliNews, after spending $1.5bn on supporting the building of the domestic Sukhoi SuperJet 100 (produced by Sukhoi, part of OAK), the government was said to be set to spend another $2bn on stimulating demand for the plane and another $1.6bn on a new version of the aircraft.
Reportedly, the new plan would promote building 735 civil jets by 2030, including IL-114, MS-21 (MC-21) and Baykal, as well as developing five types of helicopters. The ministry targets capacity utilisation at domestic aircraft producers at 80-90%.
The analysts surveyed by Kommersant believe the plan to be too ambitious and do not match the current capacity of main domestic players.
Previously before the COVID-19 crisis domestic airlines would commission 50-70 medium-haul aircrafts per year, including Airbus and Boeings, and the estimated 30-35 jets annually targeted by the ministry is seen as excessive. The export potential for Russian jets is seen as limited.
Despite all previous efforts, close to zero SSJ100 jets were sold in 2019 and the plane is reportedly not needed for the development of a regional air carrier for the Russian Far East. This problem could be tackled by the state by bundling over 60 jets into the fleet of domestic Red Wings carrier.
9.1.4 Construction & Real estate sector news
Construction activity added +15.7% year-on-year in June, exceeding the Bloomberg consensus estimate of +5.7% y/y.
Construction activity surprised expectations to the upside, springing to +15.7% y/y from the prior +7.7% y/y.
We believe that the pickup in construction activity in June can be traced back to the completion of construction and commissioning of the Moscow Central Ring Road and was foreshadowed by the output of construction materials within manufacturing (Figure 16).
Housing construction was up +34.9% y/y in June (as measured by area of residential premises commissioned).
Moscow’s housing renovation program is estimated to cost around RUB8 trillion , said Dmitry Kovanev, deputy head of the city’s construction department, at the Moscow Urban Forum MUF 2021. According to Kovanev, this is mainly budget money. In addition, the Moscow government “is also
111 RUSSIA Country Report August 2021 www.intellinews.com