MOSCOW. May 17 (Interfax) - Russian aircraft manufacturer Sukhoi has observed the United States putting pressure on buyers of the holding's military aircraft "to abandon purchases," the company said in its Q1 2018 report.
"The restrictive sanctions imposed earlier by the European Union and Western countries against Russia and a number of individuals and legal entities have not had a significant effect on the company's business and financial component. However, the expanding nature of the sanctions is accompanied by increasing pressure from the U.S. on traditional and potential importers aiming to convince them to abandon purchases of military aircraft produced by the company," Sukhoi's report said.
At the same time, a growth in supply of aftermarket aircraft at very low prices has been observed" on the part of the U.S. and NATO countries, the report said.
"The company is taking joint measures with the United Aircraft Corporation (MOEX: UNAC) (UAC) and Rosoboronexport to stabilize the operations of enterprises in new conditions, expand the geography of exports, implement modern forms of operations with foreign buyers, and raise the competitiveness of military aircraft," the company said.
In October 2017, the U.S. State Department published a list of Russian organizations and entities with which third parties, regardless of their country of origin, are banned from conducting "significant transactions." Six "intelligence" organizations and 33 primarily defense sector companies, including Sukhoi and Rosoboronexport, were included on the list.
In January of this year, the U.S. Department of the Treasury compiled the so-called "Kremlin list" - a list of top government officials and businesspeople which the U.S. considers to be closely linked with the Russian leadership. The list was compiled consistent with the Countering America's Adversaries through Sanctions Act (CAATSA) and included UAC head Yuri Slyusar.
The Sukhoi Company, a part of the United Aircraft Corporation, designs and builds military, and to a lesser extent, civilian aircraft, including the "Su" family of military aircraft.