Economic sanctions against Russia could affect Bombardier project
Bombardier conceded plans to strike deal with Rostec to build Q400s in Russia could be delayed
MONTREAL—Bombardier Inc. says economic sanctions imposed on Russia could have an impact on the timeline of the company’s plans to set up a plant in the country.
The Montreal-based transportation giant was hoping to conclude negotiations this year with Russian company Rostec Corp. for the assembly of 100 Q400 regional jets in a project worth an estimated $3.4 billion.
Company spokesperson Marianella Delabarrera says Bombardier is now being “realistic” about the possibility the project will be ready later than originally expected.
In March, Bombardier Aerospace president Guy Hachey told an investor conference in New York that the unrest in Ukraine’s Crimea region could delay any potential deal with Rostec.
Foreign Affairs Minister John Baird announced this week that Canada would slap sanctions against more Russian individuals and entities, including government agencies, over that country’s continued military actions against Ukraine.
Canada has so far imposed sanctions against 110 individuals and entities.
Delabarrera says Rostec has not been targeted by the sanctions and that talks with the Russian company will continue.