Reports: Russia Could Raise EADS Stake
Monday May 21, 5:23 am ET
Reports: Russia Could Raise Stake in EADS if Deal on Local Production Reached, Official Says MOSCOW (AP) — Russia could raise its stake in struggling aerospace conglomerate EADS if a deal is struck to make Airbus jet parts locally, a senior aide to President Vladimir Putin said Monday, according to Russian news agencies.
Arkady Dvorkovich said that Russia could increase its 5 percent stake in the European Aeronautic Defence & Space Co. "only ... if United Aircraft Corp. and EADS agree to cooperate on aircraft manufacturing," RIA-Novosti quoted him as saying, referring to Russia's state-controlled aircraft manufacturing monopoly.
Dvorkovich said the construction of components for Airbus aircraft or an exchange of assets between the two companies was possible, according to RIA-Novosti.
Last year, Russia's state-owned Vneshtorgbank, or VTB, announced it had acquired 5 percent of EADS. In response, EADS warned that the Moscow bank would not be welcomed as a decision-making industrial shareholder.
Some observers say tighter links with Russia could endanger the European defense group's U.S. business, and generate concern about governance at EADS and the transfer of sensitive technologies.
Moscow appears determined to increase its role in Airbus, which is struggling to recover from costly delays to the A380 superjumbo, losses because of the weak dollar, and a year of management turmoil that has sent EADS stock tumbling. In April, Russia's trade minister pushed for closer partnership while on a visit to Paris.
Dvorkovich's remarks come days after France's new president Nicolas Sarkozy called for EADS to attract new investors by changing its relationship with shareholders.
"How can you entice new shareholders to invest in the company with a shareholder pact which gives new shareholders the obligation to pay, but not the right to vote?" he asked.
Russia, EADS agree to develop new cargo aircraft-1
KAZAN, May 21 (RIA Novosti) - Russia's United Aircraft Building Corporation (UABC) and the European Aeronautic Defense and Space Company (EADS) have agreed to develop a new cargo aircraft, a senior presidential adviser said Monday.
Addressing a business forum organized by the European Bank for Reconstruction and Development in the capital of the Volga republic of Tatarstan, Arkady Dvorkovich said: "An agreement has been reached with EADS to develop a cargo aircraft."
Dvorkovich said earlier Monday that Russia's state-run foreign trade bank Vneshtorgbank (VTB) could increase its stake in the European Aeronautic Defense and Space Company (EADS) if the aerospace corporation and the United Aircraft Building Corporation (UABC) agreed on a joint production deal. VTB bought a 5% stake in EADS for 1 billion euros (about $1.35 billion at the current exchange rate) last year.
However, VTB's press service quoted board member Vasily Titov as saying that the bank does not plan to invest more in EADS for the time being. "VTB Group considers the investment exclusively commercial, and taking into account the current market situation, VTB's 5% stake in EADS is optimal," Titov said.
Dvorkovich said the production of components for Airbus could be localized in the country under a wide cooperation program being implemented by EADS-owned Airbus and the Russian aviation industry. Airbus said it expected the cooperation program to generate a turnover of more than $800 million over 10 years for Russia.
EADS controls 10% of Irkut, one of Russia's largest aerospace holding companies and part of the UABC, and an EADS official has been on the Irkut board since March 2006. In 2010 EADS and Irkut will open a joint venture to convert of A320 passenger jets into cargo aircraft.
The UABC, which is 90% state owned, incorporates aircraft building companies and state assets engaged in the manufacture, design and sale of military, non-military, transport and unmanned aircraft in a bid to streamline the Russian aviation industry.
Airbus outsources A350 work to Russia
Airbus, the European aircraft maker, on Thursday ceded design and production of parts of its planned A350 aircraft to Russia's United Aircraft Corporation as flag-carrier Aeroflot firmed up an order for 22 of the wide-body jets.
The deals signed by executives from Airbus parent EADS and Russian officials were meant to show that the aircraft maker's plan to outsource work can secure orders in spite of fierce competition from US rival Boeing.
Giving work to foreign suppliers has angered labour unions as Airbus aims to cut one in 10 of its 87,000 staff in France, Germany, the UK and Spain.
The "Power 8" restructuring programme is meant to restore the troubled group's fortunes.
The Russian agreement reflects President Vladimir Putin's aim to restore the fortunes of the country's aerospace sector.
A state-owned bank last year bought 5 per cent of EADS and Mr Putin has called for a board seat – so far unsuccessfully.
EADS said Russia's new aerospace champion UAC would design and manufacture 5 per cent of the A350's airframe.
The Russians will underwrite the cost of their investment in a project that has first deliveries slated for 2013.
Russian airline Aeroflot at the same time reaffirmed a letter of intent to buy 22 A350s for delivery between 2014 and 2017. At list prices, the order would be worth $4.4bn, although discounts for big orders are common.
Although details have yet to be worked out, the UAC deal is a milestone for Airbus, which has pledged to farm out half of the A350 airframe to risk-sharing partners as it develops an answer to Boeing's 787 Dreamliner.
Costly delays in making the A380 superjumbo forced Airbus to ask suppliers to take some of the strain of the A350 – a model pioneered by Boeing for the 787.
When it announced plans to press ahead with the A350, Airbus said it hoped to cede about a fifth of the €10bn development costs to suppliers, signalling both Russia and China could get 3-5 per cent of airframe work.
Both countries are important markets for the world's two big manufacturers and Airbus hopes workshare agreements such as that with UAC will encourage Russian and Chinese airlines to buy European.
EADS and UAC on Thursday also formed a joint venture to convert the single-aisle aircraft into mini-cargo jets. Sites for the conversion of the aircraft are earmarked for Moscow and Dresden in eastern Germany.
In addition, the companies pledged to commission a study of the cargo-jet market and to look into "possible co-operation between EADS and Russian industry" in this sector, EADS said in a statement.
Source: The Financial Times
Russia begins construction of new Soyuz launch facility
By William Atkins
Thursday, 01 March 2007
Monday, February, 26, 2007 was the official opening of Russia’s newest launch facility for its Soyuz rocket. The Guiana Space Center is a French spaceport on the coast of French Guiana, which is located in the northern part of South America. Such action by Russia shows the increasing cooperation between the European and Russian space programs.
The Guiana site is located on the coast of the Atlantic Ocean between Brazil and Suriname near the coastal town of Sinnamary (between Kourou and Iracoubo). It is about 500 kilometers (310 miles) north of the Earth’s equator, making it very favorable to launch craft into space, especially with water positioned underneath ascending rockets. Its latitude of 5 degrees, 3 minutes gives additional speed of about 500 meters (0.3 miles) per second to rockets moving eastward around the Earth.
Besides the European Space Agency (ESA) and Russian Federal Space Agency (Roskosmos), the French space agency CNES (Centre National d'Études Spatiales) and the French company Arianespace SA launch from the Guiana Space Center (French: Centre Spatial Guyanais). The site has been an operating launch facility for ESA since 1975 and for Arianespace since 1984.
Excavation work began two years ago on the Russian site and is expected to continue well into the first half of 2007. Beginning in March 2007, the construction of buildings is expected to commence in support of the launching of Soyuz launch vehicles. Roskosmos officials have declared that the first launch of a Soyuz rocket is expected to be in late 2008.
The Russian project is being funded by the European Union, ESA, and Arianespace SA. The French CNES is the prime contractor for the construction project. ESA officials have signed agreements to launch some their spacecraft with the use of Soyuz rockets from this site.
The Guiana Space Center will be used in additional to Russian’s primary launch facility, the Baikonur Cosmodrome in Kazakhstan.
The Web page of the Guiana Space Center is: http://www.cnes.fr/web/4678-centre-spatial-guyanais-english-version.php.
Russia, ESA to sign contract for 4 rocket launches from Kourou
KOROLYOV (Moscow Region), May 15 (RIA Novosti) - Samara-based design bureau Progress plans to sign a contract with the European Space Agency at Le Bourget air show for the launch of four Soyuz-ST carrier rockets from the Kourou space center in French Guiana.
Progress spokesman Alexander Kirilin said the first contract will be signed in mid-June. The company has already built the first two Soyuz-ST rockets to be shipped to French Guiana by sea.
"One rocket will be sent in late 2007 and the other in early 2008," he said, adding that 12-13 Soyuz rockets will be launched from Russian soil before the end of the current year. The first Kourou launch is planned for 2009.
The European space company said last November that launching one of Russia's new booster rockets from the site in French Guiana, on the north coast of South America, will cost customers $50 million.
Russian and French space officials signed a contract in February 2006 to launch four Soyuz-ST booster rockets from Kourou over the next 10 years to orbit heavy payloads.
The 344-million-euro Kourou launch pad, located near the equator, will make it possible for Russia's updated Soyuz-ST to orbit heavier cargoes than from the Plesetsk Space Center in northern Russia or the Baikonur space center leased by Russia from Kazakhstan.
The project, which is based on a November 2003 agreement between the Russian and French governments, will also allow Russia to substantially expand its commercial use of Soyuz booster rockets on the international market.
In my last post Russia-EU Summit: The Europe's weak hand i talked about Europe and Russia divergences/problems. Called too, your attention for the "professional" work, by the BBC writer.. It is always necessary to remind human rights, democracy in Russia, it is always necessary to give a negative image of Russia, if they repeat this so many times, people will have this printed in the brain...
And why is so necessary to do all of this? well, because despite these professional writers paid by their american bosses, sorry paid by BBC to do their (des)information job, the fact is Europe and Russia are building bridges.
- US build new bases in Europe, Russia build new links to deliver energy
- US puts fighter jets in the new "New Europe", The "Old Europe" put Russia building the new european plane A350
- US wants to put missiles in Europe, Russia put rockets and make business with Europe Why these professional writers doesn't question for Europe prefering making business and long term projects with Russia instead US?
Because they don't want readers discover the truth. despite all pressures, despite so many obscure interests, Europe and Russia want to work together, want build a future where they can cohexist.
Meanwhile US do what? put missiles, open new bases and pay writers.
To finalize, i would like to call your attention for some facts described on these articles.
First: today, after the meeting between Russia and EU, there are signs that Russia can increase their stake in EADS. Implications are simply huge.
"...France's new president Nicolas Sarkozy called for EADS to attract new investors by changing its relationship with shareholders..."
"...How can you entice new shareholders to invest in the company with a shareholder pact which gives new shareholders the obligation to pay,
but not the right to vote?" he asked."
It will be interesting to see what will be the position of the new French President towards Russia.
"...Airbus, the European aircraft maker, on Thursday ceded design and production of parts of its planned A350 aircraft to Russia's United Aircraft Corporation..."
"...Giving work to foreign suppliers has angered labour unions as Airbus aims to cut one in 10 of its 87,000 staff in France, Germany, the UK and Spain..."
It is a very difficult political decision Europe made, and shows the long term project they want to develop with Russia.
"The Guiana Space Center is a French spaceport on the coast of French Guiana, which is located in the northern part of South America. Such action by Russia shows
the increasing cooperation between the European and Russian space programs..."
Well... why aren't we listening news of this kind between Europe and US?
I can show another example of diference in cooperation: Russia and Europe, Galileo and Glonnass GPS projects are to have compability, US GPS and European
Galileo, US threats to shot down Galileo sattelites, if used by others countries in wartime...
Europe and Russia, do they cooperate? doesn't look for what writers say (me included!), look for what they do.
Comments by FromPortugal