In late September, the Interfax agency published a material stating that the Russian government plans to cut funding for the domestic aviation industry by 40% in 2026 and 2027. The Technosphere Russia publication explained why the reduction in the flow of money will not affect the production rate of new MC-21-310, SJ-100, Il-114-300, and other aircraft.
First, it is necessary to understand the volume and purpose of the allocated funds. However, more on that later. More important are the expenses in the industry and sources of funding.
Where does the money come from?
So, mainly, enterprises spend funds on the construction and renovation of workshops. At the same time, all work on engines is a separate line item.
The construction of new workshops is financed either from the state budget or from the own funds of the United Aircraft Corporation (UAC) — as in the case of the Superjet — or from the investments of carriers — S7 (Siberia) — with the Tu-214.
The production of aircraft is financed directly from credit funds or funds from carriers. Money was allocated for the aircraft — it is being built.
Certification and refinement of aircraft require the least amount of spending. They only concern the first years of operation, when downtime is likely due to identified technical problems.
External revenue has not been canceled
As of autumn 2025, the most significant projects, the MC-21, SJ-100, and Il-114, are in the final stage of certification and production preparation. No major investments are required here.
UAC can finance many aspects through military contracts and other components of the state defense order (SDO). And external revenue has not been canceled. These are very large sums. Therefore, the budgetary part could have been partially cut.
Current deliveries are financed by the State Transport Leasing Company (GTLK), as well as other leasing companies. Accordingly, subsidizing loans for the purchase of the MC-21 remains. This means that aircraft deliveries remain within the plan.
Cutting funding does not mean killing the industry
As for the state order itself, it does not imply a high level of profitability, but much more is included in the expenses than was actually involved.
This includes related purchases, the payroll of unused personnel, utility payments, and other things that allow relieving the burden on the enterprise.
Also, Rostec, the state corporation overseeing the aircraft industry enterprises, may receive a property contribution to reimburse the costs of paying coupons on bonds in 2026 — 10.4 billion rubles, in 2027 — 4.3 billion rubles, in 2028 — 10.5 billion rubles.
In general, there are many pockets. No one has canceled the plans. Cutting any budget items is not equal to killing the aviation industry as a whole. Workshops were built and equipped, aircraft were partially built, and they were built with already allocated funding. Nothing new has been invented yet.
Against this background, it became known that in 2026 the Cabinet will allocate 54.47 billion rubles for applied research and development and scientific research in the interests of the Russian aviation industry.
Earlier, www1.ru reported that the TV7-117ST-01 engine for the Il-114-300 will be able to operate even in the Arctic.
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