Russian Helicopters
Russian Helicopters MI-38 displayed at Dubai Airshow 2019 at Dubai World Central in Dubai. Picture is for illustration purposes only. Image Credit: Gulf News

Dubai: Tawazun Economic Council on Monday signed a preliminary agreement to invest €400 million (Dh1.62 bukkuib) in VR Technologies (VRT), a subsidiary of Russian Helicopters Holding Company, with the deal giving Tawazun a 50 per cent stake in the company.

The signing of the deal took place on Monday on the sidelines of the Dubai Airshow with several officials in attendance including Khaldoun Khalifa Al Mubarak, chairman of the Executive Affairs Authority and board member of Tawazun Economic Council, and Denis Manturov, minister of Industry and Trade of the Russian Federation.

“Tawazun Strategic Development Fund (TSDF) is in the advanced stages of concluding an agreement for the acquisition of up to 50 per cent stake in VRT. The agreement is expected to be finalised by the end of the first quarter of 2020,” said Tariq Abdul Rahim Al Hosani, chief executive officer of Tawazun, commenting on the deal.

“This agreement is in line with TSDF’s efforts to invest globally in financially rewarding investments through strategic partnerships. Tawazun is committed to supporting the development of the UAE’s private sector, as well as its industrial and technological capabilities for the creation of home-grown, technological capabilities,” he added.

Andrey Boginskiy, director general of Russian Helicopters, said the company would also be investing an equal €400 million.

“As equal partners, we plan to invest at least €400 million in the development of VRT, which will help make the company’s products competitive and in demand all over the world.

“We were able to achieve full understanding with Tawazun, without which it would be impossible to implement such significant and large-scale projects,” he added.

Boginskiy also spoke on increasing Russia’s market share within the UAE and the region and said he was positive about the future.

“The Middle East is a huge market and the UAE is a country with a lot business interests for us. That’s one of the reasons why we accepted a preliminary proposal from Tawazun, because they’re very business active people and they’re interested to develop relations.

“This is a good opportunity for us and them to join our strong experience in the design of helicopters and the possibilities for sales,” he added.

“[We are] present with our military helicopters [in the Middle East] which for us is an opportunity to increase the market share,” he said.

India delays

Boginskiy also spoke again on India delaying the signing for purchasing 140 helicopters and said that the group was still waiting to move forward.

“We are waiting for their answer because we provided all the necessary information about the localisation [component of the deal].

“At the start of this year we signed LOI (letter of intent) agreements with different Indian companies to localise the main components which was required by the Indian government.

“We are waiting for their decision; we’re ready to go further for this project [once we get the reply],” he added.