First new Ex-Im financing in Russia since 1998

News | 4 April 2000

First new Ex-Im financing in Russia since 1998 (April 4, 2000) US Ex-Im Bank is providing a US$1.5 million medium-term guarantee to support the sale of 11 sets of traffic collision avoidance systems (TCAS) by Honeywell Inc, of Phoenix, Arizona, to a Russian cargo airline. It is the first new transaction financed by Ex-Im in Russia since the 1998 Russian financial crisis.Volga-Dnepr JS Cargo Airline, of Ulyanovsk, will install the TCAS equipment in eight Ukrainian-manufactured Antonov AN124-100 and three Russian-manufactured Ilyushin IL-76TD large freighter aircraft, making the planes safer to fly. Volga Dnepr flies numerous international flights, including relief shipments for the United Nations and transport of satellites and aircraft for the US Department of Defense."We are pleased to be able to support the aerospace industries in Russia and the Ukraine and at the same time help finance US exports to the Russian market," says Ex-Im chairman James Harmon. "The equipment will enhance the safety of flights by Volga-Dnepr aircraft throughout the world."Ex-Im is guaranteeing a loan by Citibank to finance the sale. The transaction is secured by a first-priority mortgage on one of the AN124-100 aircraft. The AN124-100, designed by Antonov Design Bureau and manufactured by Aviastar, is the world’s largest aircraft with a cargo capacity of 1,113 cubic metres, more than 50% greater than the capacity of a Boeing 747-400F freighter aircraft. The IL-76TD aircraft is manufactured by Ilyushin.TCAS is a radar-like system on aircraft that monitors air traffic in the vicinity of the aircraft. It is designed to act as a backup to the air traffic control system. By communicating with the same type of equipment on another aircraft flying nearby, the TCAS calculates potential for collision, warns flight crews, and advises how to resolve the conflict. The equipment consists of a radio transmitter and receiver, directional antennas, computer, and cockpit display.Visit Ex-Im’s web site at www.exim.gov.

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