Russia’s United Aircraft Corp. (UAC) will need a RUB300 billion ($4.8 billion) capital injection “to complete the financial restructuring,” Rostec Corp. CEO Sergey Chemezov said in a meeting with Russian President Vladimir Putin July 22.

“First of all, this sum is needed to implement the MC-21 programs and other civilian projects … We have inherited numerous loans from the 1990s and the early 2000s. Of course, we are servicing these debts and repaying the interest, but we will have trouble repaying the actual loans themselves,” Chemezov added.

Earlier in July, Rostec announced plans to raise RUB100 billion with a series of bond issues that will list at MOEX Russia. The company said it will finance several civil projects, including the creation of ambulance aviation and development of MC-21 narrowbody aircraft.

In 2018, the Russian government decided to transfer 92.31% of its shares in UAC to Rostec. It was expected the merger to take around 18 months. In June, Chemezov said the process will be delayed as UAC audit would last through the end of 2019.

Polina Montag-Girmes