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Tue, Feb 27, 2007

Russia Requests Parts Supply Agreement With EADS

Country Wants Stake in Building Airbus A350XWB

Russia continues to make motions towards gaining a larger financial stake in European aerospace consortium EADS. The country has requested to supply parts for Airbus' upcoming A350XWB medium-range widebody, according to Vitaly Shmelkov, head of the German-Russian alliance for economic affairs.

Forbes reports Shmelkov announced Russia's intent to the Financial Times Deutschland, an international economic news organization.

Russian owned international bank group, Vneshtorgbank, currently holds about five percent of EADS -- and as Aero-News reported last week, Russian president Vladimir Putin openly hinted he would like a larger piece of the aerospace pie.

A spokesman for EADS told the newspaper "one of the company's working groups is currently evaluating the extent to which Russian industry can participate in the construction of the aircraft."

According to the Financial Times, Russia suggests it could supply three percent of the parts needed for the A350.

FMI: www.eads.com

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