Ukraine not asking Russia to quit An-70 project – source

MOSCOW. Feb 7 (Interfax-AVN) - Moscow can only think over dropping the Russian-Ukrainian An-70 transport aircraft project if Kyiv asks it to do so, a source in the Russian Defense Ministry familiar with the defense industry told Interfax-Military News Agency on Tuesday.

"In this case Russia will undoubtedly have to be compensated for the contribution it has already made to the project, including for intellectual property," he said.

He added that no any moves from Kyiv asking Russia to withdraw have been made.

The source was commenting on the statement made by Oleh Shevchenko, director general of the Kyiv-based Aviant aircraft building plant, who said that the An-70 program cannot progress as Russia refuses to withdraw from it.

"If Russia had quit the project, we would have found powerful allies and investors," Shevchenko told reporters in Kharkiv on Monday.

According to him, the An-70 project is quite interesting for Arab world investors, as well as Americans.

The Russian Defense Ministry source told Interfax-AVN that the project is quite expensive for both Ukraine and Russia, as about $5 billion have already been invested.

He added that it will take another several dozen million dollars and two years to complete the project.

"First of all, all four D-27 engines of the aircraft should be brought in compliance with the standards to give go ahead to the bench tests of the aircraft, while now only one engine meets the requirements. This will take from one to two years and another $15 million," he said.

"Secondly, service life assessment of D-27 engines should be completed, which will also take about two years and $2 million," the source said.

"For the An-70 project to progress, including flight testing in all altitudes up to 13,000 m and flight speeds, seven more such engines should be built. Each engine costs about $4 million," he noted.

The An-70 tactical military short-takeoff/landing transport aircraft program is being implemented by Russia in cooperation with Ukraine on the basis of 1993 and 1999 intergovernmental agreements. The official customers of the aircraft are the Russian and Ukrainian defense ministries.

Under the agreements signed, Russia is to provide funding of research and development of the An-70 by 72%, while Ukraine should invest the remaining 28%.