RESTRICTED
WORLD TRADE WT/ACC/UKR/14
3November 1995
ORGANIZATION(95-3398)
Original: English
ACCESSION OFUKRAINE
Communication from Ukraine
TheGovernmentalCommissiononUkraine'sAccessiontotheWTOhassubmittedthefollowing
replies toquestions concerning Trade inCivil Aircraft.
_______________
1. Please stateinspecific terms thestructure andpresent stateoftheUkrainian civilaircraft
industry.
Up-to-date Ukraine stillhassufficient personnel, scientific, technical andindustrial potential,
which isnecessary todevelop andproduce aviation. Total aviation complex ofUkraine includes 80
enterprises(designbureaux,scientific-researchinstitutes,plants).Morethan150,000peopleareengaged
inthisindustry. Producing infrastructure ofthecomplex covers more than10oblasts ofUkraine.
TheAviation Scientific-Technical Design Bureau "Antonov" isthemain design bureau on
developing aircraft, Design Bureau "Progres" (Zaporizhia) isthemain design bureau ondeveloping
engines, theScientific-Producing Association "Electronprylad" (Kiev) isthemain design bureau on
developing radio-electronic equipment. ThisAssociation isplanning todevelop andpartially produce
radio-electronic equipment forallUkrainian aircraft.
Aviation industry enterprises overcome anextremely difficult period. Theproduction ofthis
branch ofindustry isstilldeclining. In1994 production decline amounted to60percentcompared
to1993. Theamount ofworkers declined by12percent,average wageinJuly1995was3,25mln.karb.
Aviation branch 'sworkisbased ontheStateProgramme ontheAviation Industry Development,
adopted bytheDecree ofthePresident ofUkraine in1992.
Theabove-mentioned Programme provides foraircraft developing: army transporting ÀÍ-70,
transporting ÀÍ-70Ò,passenger Àí-140, Àí-180, Àí-218, serial production ofaircraft Òó-334 andÀí-74
anditsmodifications, andalsotheaviation engines forthegeneral aviation production development.
Duetounsatisfactory financing, works onÀí-70,Àí-70Ò,Àí-140, onhelicopters Ì³-34andÊà-128
arecarried outwithdelay.
Skilful specialists resign from theaviation enterprises duetolowwages andworsening of
social conditions. Onlyalittlenumber ofyoung specialists gototheaviation enterprises aftergraduating
institutes duetothesameproblem. Average ageofthespecialists atmany design bureaus exceed 45-50
years. Itisnecessary totheyoung specialist towork during 8-10years tobecome arealaviation
designer. Duetotheproblem thatthere areonlyfewyoung specialists there isathreaten thataviation
industry ofUkraine will,fortheparticular period, loseitsscientific andtechnical potential.WT/ACC/UKR/14
Page2
2. Please provide information onthespecific sub-sectors oftheaircraft industry (Large
aircraft; Small/medium sized aircraft, Helicopters, Aero-engines, Equipment etc.)and
withaparticular emphasis onturnover, order backlog etc.
Enterprises subordinated totheMinistry ofMachine building Industry ofUkraine areableto
fulfiltotally theDevelopment Programme ontransporting andpassengers aircraft, which means from
thedevelopment toserial manufacturing.
Up-to-dateUkrainianaircraftbuildingenterprisesaremanufacturingthefollowing:Àí-72,Àí-72Ï,
Àí-74,Àí-32Á,Àí-124, Àí-32Ï.
Aircraft industry envisages thefollowing aircraft manufacturing:
Table 1
(byyears)
1995 1996 1997
Àí-124 1 - -
Àí-32Á 5 5 5
Àí-72,74 24 24 24
Àí-70,70Ò - 2 4
Àí-140 - 2 6
Òó-334 - 2 6
Thepreparation tomanufacture Russian small andmedium classhelicopters hasbeenstarted.
Table 2
1995 1996 1997
Ì³-34 4 10 26
Êà-228 - - 2
Besides, engines-building plants develop andhavestarted toproduce agreat variety engines
ofthenewgeneration, which, bytheirtechnical characteristics (fuel, effectiveness, weight andcapacity),
comply withtheanalogues production ofUnited States, United Kingdom andGerman firms. During
1995to1999 engine-building plants areplanning toproduce more than3000 newgeneration engines
fordomestic aircraft-building industry aswellasforexportation.
Table 3
General Aviation
(superlight aviation)
1995 1996 1997
Delta-plane T-22,
T-22C20 100 180
Agricultural aircraft
T-12, Ò-12ÑÃ- 1 4WT/ACC/UKR/14
Page3
1995 1996 1997
Practice Aircraft
T-16, T-14, T-18- - 6
Superlight helicopter
BT-28- - 1
3. Please provide dataontrade incivilaircraft, bysub-sectors, aswellasinformation on
customs duties.
Forthepresent moment Ukraine 'saircraft industry offer tosellandtolease cargo aircraft
Àí-32Á,cargo aircraft Àí-74.In1994, 2aircraft Àí-32Á,4aircraft Àí-74,aircraft Àí-124, weresold.
InMarch 1995, thecontract wassigned tosell11aircraft Àí-74and9aircraft Àí-32Á.
In1994, 295engines were sold, which amounts to30percentof1991 level.
Foreign firms prefer toleaseaircraft, which make impossible tocreate thelong-term portfolio
onaircraft industry orders.
Asitwasshown, aviation enterprises areunable todecide questions onaircraft selling and
leasing without thegovernmental andState support duetotough market competition.
Customs duties arethefollowing:
Table 4
HSCode Commodity Description According toHS RateofDuty
Favourable Full
88.01 Balloons anddirigibles; gliders, hanggliders and
other non-powered aircraft10 20
88.02 Other aircraft (forexample helicopters,
aeroplanes); spacecraft (including satellites) and
spacecraft launch vehicles0 20
88.03 Parts ofgoods ofheading No8801 or8802 10 20
88.04.00.000 Parachutes (including dirigible parachutes) and
rotochutes; parts thereof andaccessories thereto10 20
88.05 Aircraft launching gear; deck-arrestor orsimilar
gear; ground flying trainers; parts ofthe
foregoing articles0 20
4. Please state what kindofindustrial policy andwhat forms ofgovernment support have
beenadopted bytheGovernment ofUkraine. Areoffset transactions inpractice inyour
country?
InJune1992theProgramme onDevelopment oftheAircraft Industry ofUkraine wasadopted
bythePresidential Decree. ThisProgramme stipulates headorganizations, work directions, aircraft
types priority, terms andscopes offinancing.WT/ACC/UKR/14
Page4
Asaresult ofnecessary financing analysis taking intoaccount therealeconomic situation
inUkraine, thepriorities arethefollowing:
2.1. Aircraft Àí-70, Àí-70Ò,developing instead ofÀí-12, ²ë-76, have higher fuel
effectiveness.
2.2. Passenger aircraft Àí-140 iscreating tochange aircraft ßê-40, Àí-24.Also thenew
aircrafthasmanyadvantagesbeforeRussianaircraftÌ³Ã-110,²ë-112infueleffectiveness
andcostprice oftransporting.
2.3. Engines Ä-436 Ò-1willbewidely usedonÒó-334, ßê-42Ì,Áå-220, Àí-74ÒÊaircraft.
2.4. Òó-334 serial manufacturing familiarization.
2.5. Aircraft radio-electronic equipment forÀí-70,Àí-140 developing andmanufacturing.
2.6. Developing agreat variety ofengines forhelicopters andgeneral aviation.
Thecarrying outofworks ondeveloping newprospective aircraft Àí-180 tochange Òó-134,
ßê-42; Àí-218 tochange ²ë-86, Òó-154; newgeneration engines -Ä-18Ò1,Ä-27Ì,Ä-436 Ò2,
ÒÂ3-117-Ñ Á3goaline withthefirstpriorities. There isafamiliarization process onÊà-228, Ì³-34
serial manufacturing. Alsoaircraft fordifferent needs (agricultural, timber-industry, theMinistry of
DomesticAffairs,theMinistryofDefense,HealthProtection,commercialstructuresandprivatepersons)
aredeveloped.
Toprovide theaviation complex withnecessary materials aluminum andtitanium alloys the
State Programme onCreation ofMaterial andSemi-Manufactured Goods Production wasadopted.