MOSCOW, October 8 (RIA Novosti) - The Russian government will provide around 5 billion rubles ($170 million) in aid for state-controlled defense industry corporation Oboronprom and titanium producer Vsmpo-Avisma, the prime minister said on Thursday.
Vladimir Putin said Oboronprom would receive 2 billion rubles and Vsmpo-Avisma 3 billion rubles.
Russian Industry Minister Viktor Khristenko said that the government's aid would help both enterprises increase output by 50% by 2012.
Khristenko said the government's decision was an important step towards implementing the national strategy for the development of domestic aircraft-building.
Vsmpo-Avisma is the world's largest manufacturer of titanium, including ingots and all kinds of semi-finished items from titanium alloys. Vsmpo-Avisma's major partners are the world's largest aircraft building companies, such as Boeing, Airbus, SNECMA, General Electric, Rolls-Royce and Pratt & Whitney.
Oboronprom is a versatile engineering group that was set up in 2002. The company's core business includes helicopter and engine building.
