MOSCOW, August 24 (RIA Novosti) - Russian Prime Minister Mikhail Fradkov signed a directive to reduce import duty from 20% to 10% for business planes with carrying capacity of 15-20 metric tons, an economics ministry source said.
"This measure will be in force for nine months, and there are plans to subsequently cancel duties on this class of aircraft," the source said.
The reduced duty on business jet imports could be extended to smaller planes in the next two months, he added.
The source said Russian businessmen currently prefer to buy and register private jets abroad. According to various reports, Russian oligarchs have spent $1.5 billion on executive planes in the last two years, and they are expected to fork out another $2.5 billion on business jets over the next two years.
The most popular models among rich Russians are Bombardier's Global Express, the Gulfstream V manufactured by General Dynamics, Boeing's Business Jet and the Legacy 600 made by Embraer. Representatives of the companies are attending the MAKS-2007 air show underway in Zhukovsky, near Moscow.
A commission on protective measures in foreign trade under the Russian Ministry of Economic Development and Trade proposed at the beginning of 2007 to cut import duty on foreign planes with passenger capacity of up to 50 people to 8%, and for jets carrying 115-160 people to 10%.
In addition, the commission proposed lowering import duties for new long-haul Boeing-787 Dreamliner and Airbus A-350 planes from 20% to 10%, but the Ministry of Industry and Energy has strongly opposed the move.
The much-touted Dreamliner, which enters commercial service in May 2008, can carry up to 330 passengers.
