Boeing Seeks Partnership in Russia

Boeing Seeks Partnership in Russia

Boeing Co.`s top man in Moscow rejected charges his company wanted to conquer
Russia`s aerospace industries and said an aggressive investment strategy was
aimed at mutual benefits for it and Russian firms.

Sergei Kravchenko, Boeing vice president for cooperative programs and business
development in Russia and the CIS, said in a Monday interview that Boeing had
shown its commitment to Russia with investment here of $1 billion over eight
years.

``We think that the figure $1 billion in Russian programs speaks for itself,``
Kravchenko said.

``We think that 500 Russian engineers and scientists carrying out work for
Boeing also speaks for itself, as do multi-million contracts for the purchase of
titanium.``

In April, Boeing signed a key cooperation deal with Russian space and aviation
agency Rosaviakosmos that the two said could lead to joint development of
aircraft for international markets.

But critics lashed out, saying it helped the aerospace giant shore up its
position in Russia at the expense of local firms, which have seen orders dry up
since the Soviet collapse in 1991.

Also, many in the aviation industry and in parliament have blasted tax breaks
given to airlines such as Aeroflot to acquire planes from foreign competitors,
including Boeing.

EMOTIONAL CRITICISM

Kravchenko dismissed criticism as ``more emotional`` than accurate and said
Boeing ties to Russian firms had been good for them, even if that message was
not always carried to the public.

``I`ve heard statements like `Boeing came to Russia to kill the Russian aviation
industry.` We couldn`t do that if we tried and understand it would not be in our
best interests,`` he said.

Kravchenko said it was a misconception that Boeing was focused on Russia as an
aircraft market. He said it wanted to capitalize on technologies that domestic
firms might not be able to develop independently.

Kravchenko noted Boeing had only placed about 50 aircraft in the former Soviet
Union in the last decade, compared with annual production 489 planes last year
alone.

Very few people in Boeing`s Moscow office are involved in selling airplanes to
Russia, he said.

Last Friday, the Russian government unveiled a $7.7 billion program to
restructure the aviation industry as part of plans to help it compete with major
international competitors like Boeing and European consortium Airbus Industrie.

CONCRETE RESULTS

Kravchenko said partnership with Russia brought Boeing natural resources like
titanium — it buys 20 percent of its titanium parts here — and skilled human
resources.

Tapping Russia`s workforce has helped Boeing overcome a shortage of skilled
engineers and other specialists to work on high-tech commercial and aviation
space projects.

Work by Russians covers fields from software development, design research,
maintenance, to systems integration.
Kravchenko also underlined the pluses for Russia.

Boeing helped Russia open polar routes that shave hours off flights from North
America and Western Europe to Southeast Asia and could net tens of millions of
dollars a year in fees.

Boeing is training contracted Russian engineers to work on advanced
computer-aided design equipment, Kravchenko said.

Also, Boeing has teamed up with Russia`s Energiya rocket builder, Ukraine`s
Yuzhmash rocket builder and Norwegian engineering company Kvaener Group for the
Sea Launch project, which provides ocean-based launch services.

Reuters
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