Sanctions Clip Wings of Russian Aviation Industry
Western sanctions have significantly impacted Russia's aviation industry, drastically reducing aircraft production due to a lack of foreign components and technology. The nation struggles with high interest rates, industrial slowdowns, and reliance on complex supply chains, prompting creative solutions like engaging Central Asian airlines for domestic routes.
Russia's aviation industry is grappling under the weight of Western sanctions, delivering only one of 15 planned commercial jets in 2023. Data from Swiss intelligence provider ch-aviation highlights how dependency on foreign-made aircraft parts has stalled production.
Industry insiders point to a lack of local technological infrastructure and skilled engineers as significant hurdles. The aviation sector forms a crucial part of Russia's broader industrial decline, which saw factory output shrink at its most rapid pace since March 2022. Dmitry Polevoy of Astra Asset Management noted the industry's troubling proximity to recession due to tight monetary policies.
Despite these challenges, Russia continues to rely on third-party imports through nations like Turkey, China, and the UAE, even as parts come from major Western manufacturers. The scarcity of aircraft has also caused ticket prices to rise, impacting consumers throughout 2023 and 2024.
(With inputs from agencies.)
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