Bombardier Inc. says it is still in negotiations on a joint venture in Russia, despite the threat of economic sanctions against the country after it sent troops into southern Ukraine.
Bombardier Aerospace spokesman Marc Duchesne said in a telephone interview Monday that the company is following unfolding events in the region.
“We’re monitoring political matters in all the regions where we do business. I can’t comment on the current situation in Russia,” he said.
Montreal-based Bombardier has been in talks on a venture to manage final assembly of the company’s Q400 turboprop airplanes. “We’re still in discussions with them and it’s looking good,” said Mr. Duchesne, adding that a deal is expected later this year.
The assembly line is part of a $3.4-billion (U.S.) agreement Bombardier struck last year to sell up to 100 Q400 NexGen turboprops to Russian industrial and defence conglomerate Rostec and to leasing firm Ilyushin Finance Co.
Last year, Bombardier said Russia’s 60-to-99-seat turboprop market offers huge growth potential as expanding regional airlines seek to better serve the geographically diverse Russian Federation and neighbouring regions.
Bombardier’s rail unit – Bombardier Transportation – also has a strong presence in Russia, particularly in the signalling market.
In 2011, Bombardier took a large minority stake in Russia’s largest signalling equipment manufacturer, Elteza. It also has several joint partnerships, including a long-standing one with Russian Railways, called Bombardier Transportation (Signal).