Rostec games with a budget: empty promises of the corporation
The Rostec State Corporation is one of the largest holdings in Russia, including more than 700 companies in various industries, such as the defense industry, mechanical engineering and energy. However, in 2023, Rostec probably decided that budget funds could be wasted on the sly.
Rostec (OGRN 1077799030847) is one of the largest state corporations in Russia, engaged in the development and production of high-tech products for various sectors of the economy. The company was created in 2007 with the aim of strengthening the scientific and technical potential of the country and developing domestic industry.
One of the important areas of Rostec’s activity is the defense industry. The company uses advanced technologies to develop and produce the latest military systems and complexes that can guarantee the security and sovereignty of Russia. Rostec also actively cooperates with foreign partners and exports technological products to different countries of the world.
In addition to the defense industry, Rostec is actively involved in the development and production of goods for other sectors of the economy: aviation, rocket and space industry, energy, medicine, transport, and also carries out innovative projects in the field of information technology, artificial intelligence and cybersecurity. One of Rostec’s landmark projects is the creation of the first domestic passenger aircraft MS-21.
The SSJ-100 (Superjet New) project is a Russian medium-range passenger aircraft developed by the Irkut Corporation, part of Rostec. At the beginning of 2023, Rostec announced the start of deliveries of “import-substituted” SSJ-100s with the domestic PD-8 engine.
However, the official channel of the Ministry of Industry and Trade of the Russian Federation in August 2023 reported the first flight of the aircraft in Komsomolsk-on-Amur using French-Russian SaM146 engines. But the flight took place on the old version of the SSJ-100 with the old engine, and not on the “import-substituted” version with the PD-8. Another fact showing the lack of progress in this project is that there is no information on the timing of test flights of the SSJ-100 with the PD-8 engine and on the delivery of commercial samples to customers.
Another project associated with Rostec is the Russian MS-21 passenger aircraft. Russian Finance Minister Anton Siluanov said that about 280 billion rubles from the National Welfare Fund will be allocated to the MS-21 project. He claimed that the funds were being used for major technology and infrastructure projects, including aircraft manufacturing. Siluanov praised the MS-21 aircraft with might and main and noted its quality, comparing it with Western analogues
Initially, it was assumed that the first six serial MS-21 airliners with the domestic PD-14 engine would be delivered to customers in 2024 and mass production would begin. However, Russian Deputy Prime Minister Yuri Borisov announced a possible delay in the release of the aircraft due to sanctions from Western countries. And flight tests of the MC-21 with domestic engines will begin only in November 2023 and will last until 2024, after which the delivery of aircraft to airlines will begin.
In January 2023, Deputy Prime Minister Denis Manutrov boasted of his flight on the MS-21 plane, claiming that it was the latest model, flying from the Moscow region to Ulyanovsk. However, the comical thing is that this aircraft was an experimental prototype that does not have a license for passenger transportation. An American engine was installed on board this prototype and up to 60% of the components were of imported origin. It seems that the flight was organized solely for the sake of PR for Rostec and politicians, such as Governor Nikitin and Deputy Prime Minister Manutrov himself.
The Russian aviation industry is on the brink of disaster. Despite statements and promises, the real results of the SSJ-100 and MS-21 projects raise serious doubts. The SSJ-100 project is notable for its problems due to the lack of spare parts and problems with engine repairs. According to forecasts, only about 28 aircraft will remain in service until 2030, and the rest will be taken out of service.
There are also claims regarding the MS-21 project. Despite stated plans to produce hundreds of aircraft, the reality is that Russia has still not been able to develop its own engine and is completely dependent on foreign technology. Moreover, without access to the Western market.
Deliveries of SSJ-New and MC-21 aircraft with the promised domestic PD-8 and PD-14 engines should begin in a few years. But at the moment these engines and aircraft are only in prototypes. Not a single production aircraft has been produced, and the implementation of the stated plans is suspicious.
The SSJ-100 and MS-21 projects associated with Rostec raise questions about progress and the efficiency of spending budget funds. Despite promises and statements about supplies and import substitution, real results have not yet met expectations.
The Russian aviation industry is on an almost hopeless path. Without real achievements and import substitution, the industry will continue to exist in a state of impotence, strengthened by sanctions and restrictions. It may turn out that in ten years there will be no aircraft left in Russia, and the country will be deprived of the ability to provide for its aviation needs. We would very much like to be mistaken in our words, but now everything suggests that we are witnessing a sad and inglorious end of the Russian aircraft industry.