Belarus threatens to terminate Motor Sich shareholding in Orsha aircraft plant

Guy Anderson, London - IHS Jane's Defence Industry

16 October 2014

   

Belarusian president Alexander Lukashenko has threatened to terminate the shareholding of Ukrainian state aerospace group Motor Sich in Belarusian aircraft repair centre Orsha, it emerged on 16 October.

Lukashenko's comments came during a meeting in Minsk with Motor Sich representatives, and were reported by the president's press service.

ANALYSIS

The reason for the threatened termination is ostensibly a perceived lack of progress since Motor Sich acquired a 60% holding in Orsha in 2012. However, Lukashenko's threat comes against a backdrop of glacial relations between Russia and Ukraine and rapidly expanding military industrial ties between Belarus and Russia.

Minsk and Moscow have in recent times looked to the merger of assets such as Belarusian heavy land systems producer Minsk Wheel Tractor Plant and Russia's Kamaz truck maker, and the potential acquisition by Rostec of Russia of Belarusian semi-conductor manufacturer Integral.