Moscow plans to cut funding for its federal aircraft and helicopter production program by 1.6 times in 2026, from 139.6 billion rubles ($1.7 billion) to 85.7 billion rubles ($1 billion), according to Russian media, citing a draft of the new federal budget for 2026-2028.
The budget proposal shows that spending will continue to decline in 2027, dropping 21% from previously planned levels – from 109.7 billion rubles ($1.3 billion) to 86.9 billion rubles ($1 billion). A slight increase is projected in 2028, with allocations rising to 89.3 billion rubles ($1.1 billion).
One of the most significant reductions will affect state subsidies for Russian airlines to renew their domestic fleets. These payments will be cut to zero in 2026, compared to 1.3 billion rubles ($16 million) allocated in 2025, already down from the originally planned 4.1 billion ($50 million).
Support to offset aircraft maintenance costs will also be reduced, from 6.1 billion rubles ($75 million) in 2025 to 3.6 billion ($44 million) in 2026. However, the figure is expected to rebound to 6.6 billion rubles ($81 million) in 2027 and 2028.
The only project set to receive increased support is the MC-21 medium-haul passenger jet, touted by President Vladimir Putin as a competitor to Western airliners. Subsidies for loan repayments to manufacturers of the MC-21 and its components will rise by 25% in 2026, from 2 billion rubles ($25 million) to 2.5 billion rubles ($31 million). However, they will return to previous levels in subsequent years.
Funding for the federal “Ship and Ship Equipment Production” program will also face deep cuts. Spending is set to fall 2.3 times in 2026 – from 75.5 billion rubles ($929 million) to 32.3 billion ($397 million) – and more than halve again in 2027, from 111 billion rubles ($1.4 billion) to 50.1 billion rubles ($617 million). By 2028, allocations will shrink further to 29.9 billion rubles ($368 million).
Subsidies for building large-tonnage vessels will plunge from 5.4 billion rubles in 2025 to 1.9 billion rubles ($23 million) in 2026 and 700 million rubles ($8.6 million) in 2027. Grants for pilot batches of ship equipment will total just 108 million rubles ($1.3 million) in 2026, compared to the previously planned 2 billion rubles ($24.6 million).
The calculations exclude funding for research vessels in the fishing industry and nuclear-powered ships, including icebreakers, which continue to receive tens of billions of rubles.
Earlier this week, Russian authorities warned that more than 100 foreign aircraft could be grounded in the coming years due to sanctions and a shrinking spare parts supply.
By 2030, 109 foreign-made planes could be removed from service, Dmitry Yadrov, head of the Federal Air Transport Agency (Rosaviatsiya), told a meeting of the Federation Council’s Committee on Economic Policy, as per Russian media.
Western sanctions imposed after the full-scale invasion of Ukraine in February 2022 cut Moscow off from foreign-built aircraft and spare parts.
As a result, Russian airlines have been forced to keep a fleet of around 700 mostly Airbus and Boeing jets flying through shadowy import channels – or by “cannibalizing” other planes for parts.