Ukraine Crisis Stalls Q400 Deal

Bombardier is close to a deal with Russia's Rostec to build about 100 Q400s in Russia.
Bombardier is close to a deal with Russia’s Rostec to build about 100 Q400s.

The crisis over Russia’s annexation of Crimea has put a damper on negotiations between Bombardier and a Russian company to assemble Q400s in Russia.

Under the deal with Rostec, a Russian state corporation, about 100 Q400s would be built for the Russian market, which is rapidly modernizing its fleet by replacing Soviet-era aircraft.

International tensions and tit-for-tat sanctions being traded between Russia and many Western countries have thrown a wrench into the process but Guy Hachey, head of Bombardier’s aerospace division, said the deal may still go through.

“With the Ukraine and everything that’s happening there, it’s softened up a little bit the discussions but our partner is still very eager to make that happen,” Hachey told an investor conference in March.

Sanctions in place or contemplated at the time didn’t seem to directly impact the $3.4 billion deal but more fallout is expected from the Crimean situation.