Talks have been suspended on a U.S. Eximbank loan for a program to produce20 IL-96M/T airplanes for Aeroflot airlines on a leasing basis.
Viktor Livanov, general Director of aircraft manufacturer Ilyushin,said the suspension was prompted mainly by the financial crisis in Augustand Russia's subsequent inability to stand by its obligations to the West.
Livanov said the problem is being tackled at the highest level. RussianPrime Minister Yevgenii Primakov has sent a letter on the matter to U.S.Vice President Al Gore.
Eximbank loans constitute about $1 billion of the $1.5 billion project.
Livanov said that even though money for the assembly of the first aircraftfor Aeroflot has not been transferred, his company is carrying on the workat its own expense. The plane's flight tests are due at the end of January.Aeroflot signed an investment agreement with the Russian Economics Ministryon purchasing 20 Ilyushin aircraft in exchange for customs privileges forimporting Western equipment.