UPDATE: Ukraine’s Antonov files $5.3 mln suit vs Russia’s Aviakor

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SAMARA, Sep 1 (PRIME) -- Ukraine’s state aircraft manufacturer Antonov has filed a U.S. $5.3 million suit against Russia’s Samara–based aviation plant Aviakor the suspension of royalty payments to the design bureau, of which the An-140 plane is an intellectual property, a representative for the Arbitration Court of the Samara Region told PRIME on Tuesday.

The hearing of the case is scheduled for October 28.

Antonov and Aviakor previously jointly produced An-140 planes, but Aviakor suspended prepayments to the Ukrainian company for reasons of safety. Aviakor’s CEO Alexei Gusev told President Vladimir Putin in June 2014 that three An-140 planes for the Defense Ministry will be assembled using parts that the company already has, and wanted to produce Il-114 planes instead of An-140 at the plant.

A representative for engineering company Russian Machines, Aviakor’s parent company, said that the plant has fully paid royalty to Antonov for three An-140s it had produced.

“The producer thinks that Antonov has failed to fulfill some of its obligations under the An-140 project’s cooperation. Moreover, significant amendments to a signed contract have happened over the past years. This is why the plant’s management suspended royalty payments and will defend its position in court,” the representative said.

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