Sanktioner kan skapa problem för Boeing allierad

[Savipix]

Sanctions may affect Boeing ally in Russia
By Andrew E. Kramer The New York Times

Published: August 11, 2006


MOSCOW Boeing embarked on a joint venture Friday with a Russian supplier of titanium parts for its 787 Dreamliner airplane, although the factory in the Ural Mountains is likely to fall under U.S. sanctions against companies that have exported military technology to Iran.

Boeing agreed to the joint venture with VSMPO-Avisma, a company it has been dealing with for nine years, and has turned to as a principal supplier for its popular new midsize airliner. The plane's fuel efficiency, likely to be in demand by airlines as energy costs soar, stems partly from the Russian- supplied titanium for its lightweight airframe.

Avisma, which is now controlled by its management, is in the process of being sold to Russia's state weapons-trading company, Rosoboronexport, which was among seven companies in Russia, Cuba, North Korea and India that were sanctioned last week by the U.S. State Department for providing military technology to Iran.

Boeing is also advising the other sanctioned Russian company, Sukhoi, best known as a fighter jet manufacturer, on a new regional passenger jet, to be called the Superjet 100.

The sanctions prohibit U.S. government agencies from doing business with the seven companies, but private companies are exempt unless they export military technology. The sanctions will be in place for two years.

Boeing said last week that it was unsure whether its Russian business would be affected but had concluded that it would not.

"Boeing will continue to work closely with all government agencies to ensure our joint venture and all other activities in Russia remain compliant with U.S. and international obligations, including the sanctions recently announced," Mike Cave, a vice president for the company's airplane programs, said Friday.

Boeing said it planned to spend $18 billion on Russian titanium over the next 30 years.

The company did not disclose its initial investment in the 50-50 joint venture. Boeing is also trying to sell the finished 787 to the Russian national airline, Aeroflot.

President Vladimir Putin met Friday with the head of Boeing's commercial airline division, Alan Mulally, to congratulate him on the joint venture deal.

"Your company has always been a very reliable partner," Putin told Mulally, according to the Interfax news agency. "Today's event will help you rise to a new standard of cooperation."

Under the deal, as presented by Boeing, the Seattle-based commercial airline division will transfer some titanium-machining technology to the Russian manufacturer.

A Boeing spokesman, Mike Tull, said that the company had consulted with union leaders on the deal and that no American jobs would be lost.

Russian-machined titanium parts will be finished at Boeing's factory in Portland, Oregon, and other locations, Boeing said.

MOSCOW Boeing embarked on a joint venture Friday with a Russian supplier of titanium parts for its 787 Dreamliner airplane, although the factory in the Ural Mountains is likely to fall under U.S. sanctions against companies that have exported military technology to Iran.

Boeing agreed to the joint venture with VSMPO-Avisma, a company it has been dealing with for nine years, and has turned to as a principal supplier for its popular new midsize airliner. The plane's fuel efficiency, likely to be in demand by airlines as energy costs soar, stems partly from the Russian- supplied titanium for its lightweight airframe.

Avisma, which is now controlled by its management, is in the process of being sold to Russia's state weapons-trading company, Rosoboronexport, which was among seven companies in Russia, Cuba, North Korea and India that were sanctioned last week by the U.S. State Department for providing military technology to Iran.

Boeing is also advising the other sanctioned Russian company, Sukhoi, best known as a fighter jet manufacturer, on a new regional passenger jet, to be called the Superjet 100.

The sanctions prohibit U.S. government agencies from doing business with the seven companies, but private companies are exempt unless they export military technology. The sanctions will be in place for two years.

Boeing said last week that it was unsure whether its Russian business would be affected but had concluded that it would not.

"Boeing will continue to work closely with all government agencies to ensure our joint venture and all other activities in Russia remain compliant with U.S. and international obligations, including the sanctions recently announced," Mike Cave, a vice president for the company's airplane programs, said Friday.

Boeing said it planned to spend $18 billion on Russian titanium over the next 30 years.

The company did not disclose its initial investment in the 50-50 joint venture. Boeing is also trying to sell the finished 787 to the Russian national airline, Aeroflot.

President Vladimir Putin met Friday with the head of Boeing's commercial airline division, Alan Mulally, to congratulate him on the joint venture deal.

"Your company has always been a very reliable partner," Putin told Mulally, according to the Interfax news agency. "Today's event will help you rise to a new standard of cooperation."

Under the deal, as presented by Boeing, the Seattle-based commercial airline division will transfer some titanium-machining technology to the Russian manufacturer.

A Boeing spokesman, Mike Tull, said that the company had consulted with union leaders on the deal and that no American jobs would be lost.

Russian-machined titanium parts will be finished at Boeing's factory in Portland, Oregon, and other locations, Boeing said.