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Aircraft and Space industry

Assembly of Western-european Union, European Inter-parliamentary  Assembly in Questions of Security and Defense.

Document С/1947         21 November 2006

the session 52

“aircraft and space industry of Ukraine – cooperation with Europe”
The report is presented on behalf of the Committee in questions of technology, aircraft and space. The speakers are JAN-GI BRANGE (France, the united group) and Bill Hetherington (Great Britain, the Group of socialists).



The report: “aircraft and space industry of Ukraine – cooperation with Europe”.

CONTENT
The Project of recommendation “Aircraft and space industry of Ukraine – cooperation with Europe”.

Explanatory report is presented by speakers JAN-GI BRANGE (France, the united group) and Bill Hetherington (Great Britain, the Group of socialists).

I.    Introduction
II.    The political situation in Ukraine
III.    The reasons for cooperation between Ukraine and Europe
IV. Ukraine and NATO
V. Cooperation
VI.    Scientific and industrial potential
1.    The field of space
2.    The field of aircraft
VII. Conclusions

Recommendation № 794
“Aircraft and space industry of Ukraine – cooperation with Europe”.
Assembly
I reminded that the new reference points were made in the context of European space politic;
ии established that one of 4 trends of 7th frame program in questions of research and technical development was determined the cooperation;
iiи stressed, this cooperation concerned the key fields of scientific research,  including  transport, security and space;
иу, under the fact that in rising competition in aerospace and aircraft branches of deepening partnership between corresponding branches of European and Ukrainian industry, can give significant advantages for both sides;
в emphasized that Ukraine is one of few countries of international world community that has great technological knowledge in space sphere as it inherited а big part of  scientific-industrial potential of  the former Ussr  in the sphere of aircraft and space;
уи determined availability of partnership between Europe and Ukraine in some spheres that remains meanwhile on the level which can be rise;
уии considered that such partnership meets first of all  political interests, as after entrance Rumania into EU, Ukraine since the following year will divide the main eastern frontier of EU;
уиии taking into consideration that from economic point of view Ukraine by population and territory is one of the key actor on the European scene;
iх emphasized that at the same time the deepening partnership between Ukraine and EU on the one hand and between Ukraine and Russia on the other hand should not be alternative;
х reminded that the more deepening partnership with EU provides Ukraine  the more extensible access to European markets and capitals that our country needs;
хи determined that EU shows restraint relative to accordance to Ukraine  the outlooks  for entrance;
хии greeted the decision of Ukraine to pursue а course of European and North-atlantic integration and its desire for making а contribution using its great potential on realization of European politic of Security and Defence;
хиии taking also into consideration that entrance of Ukraine into the World Commerce Organization will be of fundamental importance for the relations between Ukraine and EU;
хиу based on the fact that this entrance could be а reason for concluding а Treaty of Free Trade and that the integrated economic market will further undoubtedly the partnership in aircraft and space branches;
ху greeted the various partner projects between Ukrainian government and EU and European aircraft and aerospace enterprises,

recommends Rada:
1. to urge countries-members of Western European Union as members of EU and European Space Organization to deep studying the question of partnership with Ukraine in aircraft and aеrоspace branches for the purpose of establishment, encouragement and deepening of this partnership, taking into consideration the advantages:
а.    to provide an association between European Space Organization and National Space Agency of Ukraine;
b.     to provide partnership in realization of European satellite Earth observation system;
c.    to advance more actively European priorities in the Ukrainian official quarts and Ukrainian aircraft companies;
d. to achieve in this connection the concluding а treaty of partnership on helicopters and patrol aircrafts.

Explanatory report

И. Introduction
1.    Space is а strategic-industrial sector in many directions.      Technological process in this branch is very important for realization of European politic, both in civil (service, economic growth, environment, transport) and in military field (European politic of security and defence, public foreign and security policy). Scientific space researches are of benefit for society on the whole.
2.    Lisbon strategy determines the ambitions of Europe for competitiveness and economic dynamics. The space field in Europe takes the second place in the world. The Europe disposes to development of specific and ambitious European space policy.
3.       The new orientations were determined in European policy in the field of space.   The main four aims which were developed in the context of the Seventh program in questions of technologic researches and development, include cooperation in crucial branches of research, like transport, security and space.   Ukraine can be equipped in such cooperation projects, especially after introduced proposition of Commission for double the budget of Frame program, to raise it to 70 milliards Euro during the mentioned period.
4.     Europe has to find it place between autonomy and partnership. We are the witnesses of the hard international competitions in aerospace branch, especially with the advent of new country-competitors, for example – India.  Therefore the commitment for cooperation between all European companies becomes stronger.
5.    In this competitive branch of intensification of cooperation can be mutually beneficial both for EU and for Ukraine. Ukraine is one of 8 countries of world space society which possess the wide spectrum of technologic knowledge  in space programs. Ukraine inherited the part of military-industrial complex of Former Soviet Union.  But even when the military-industrial complex becomes weaker, it is very important. In 2004 Ukraine made 7 launching, in 2005 - 5, what makes accordingly 13 % and 9 % of this world activity. National space program of Ukraine for 2003-2007 years emphasizes the importance of supporting the space activity of the country and developing of the international cooperation in this branch.
6.    Between EU and Ukraine separate projects of cooperation were started. The both sides inform about mutual advantages which can bring the intensification of cooperation between them in space branch.  The question is how we can achieve it?
II. The political situation in Ukraine.
7.    The policy situation in Ukraine is involved. During the last elections in March 2006 party of V. Jushenko “Our Ukraine” had only 14% of all votes,  32,1 % yeas were for “Party of regions” of V. Janukovitsh  and 24 % yeas for "Bloc of Julia Timoshenko". In that way V. Jushenko could not only form а majority in the parliament, but he could not also make terms with ex-premier J. Timoshenko.  In order to avoid dissolution of parliament he appointed at the 3. of August 2006 his former rival V. Janukovitsh  as а Prime minister. But this agreement was completed after signing of а “Pact of national unity” between the parties. In this way they confirmed the succession of purposes which are very important for the participants of „Orange revolution“ – rapprochement with  EU, entry into World Commerce Organization and NATO (after referendum). In spite of everything the President V. Jushenko keeps under his control the foreign policy. B. Tarasjuk and A. Gricenko both of westernized orientation, remain accordingly on the posts of а Foreign Minister and а Minister of Defence.
8.    In spite of political complications in Ukraine the general idea of Europe is that the election of V. Jushenko а President of Ukraine opens а new chapter in the history of this country and gives new opportunities for Ukraine and for its relations with EU.  Orange revolution was an important step on the path to democracy. It is considered that its influence in spite of actual political crisis in Ukraine is irreversible.

III. Motives for partnership between Ukraine and Eu
9.    The aerospace partnership between EU and Ukraine meets first of all the political interests. After the entry of Romania into EU Ukraine will be the main eastern frontier of the Union.  It is also а zone for transit of gas into European countries. So there is а vital interest to act for security and stability in this region.
10.    From the economic point of view the Union is interested in branching out its activity in other markets. Ukraine is the biggest European country after Russia. Its territory is 600 000 km and population in 47.6 millions. Since the year 2001in spite of numerous crisis´ Ukraine is restored: annual increase is 8% for 5 years, in particular 12 % for the year 2004.
11.    Concerning the technical aspects Ukraine has а big technological potential and several centres for vocational training that makes it in full measure able to participate in specific projects. It concerns especially aircraft branch where Ukraine is famous for its planes Antonow 148 and 124. In space branch Ukraine is а producer of inexpensive and firm launchers: particularly “Zenith” is the most modern rocket of the former USSR.
12.    Moreover Ukraine has already demonstrated its ability for partnership. It is а partner, at the rate of 15%, in the program “Sea start” – а wide-ranging joint venture that includes American, Ukrainian, Norwegian and Russian companies. In the „Sea start“ launcher “Zenith” is а serious rival of “Ariana”.

ІV. Ukraine and NATO
13.    At the meeting Nato-ukraine at 14-th of September 2006 the Prime minister V. Janukovitsh adjourned the process of entry into NATO providing such explanation: „Because of the actual political situation in Ukraine we have to wait now, but the time comes when we should make а decision“. In the country first political and economical reforms should be carried out before the consideration а question about entry into NATO which then should be approved of а referendum.
14.    However the partnership with NATO is not incredible. Even through Ukraine will not join to the Plan of actions concerning а membership, the country have already begun reforms in the branches of Security and Defense. The main spheres of the partnership between NATO and Ukraine are determined in the Plan of actions Nato-ukraine signed in Prague at the 22-th of November 2002 which establishes principles and purposes of the partnership, especially in the branch of Defense.  Thus the purpose which is at the heart of this Plan is really а complete integration into Euro-atlantic organizations. Moreover it shows а desire to develop the partnership between the countries for eirenicon, adjustment of conflicts and struggle against terrorism.  NATO appeals Ukraine to adopt its structure and missions, particularly by realization of „Deep conversion of defense industry” – by examination with the problems that have caused impossibility of functioning of the most of Ukrainian organizations which were inherited from Soviet time.
15.     Committee of NATO – Ukraine was created with the aim of introduction in practice the regulations “The charters of special partnership  between NATO and Ukraine”, made some work groups, the most important of them, as to our mind, is the joint work group in questions of reforms in the field of defense, it founded in the year 1998. With it help Ukraine can reform its armed forces, adopt the experience and competence of NATO members-countries.
16.    The position of Prime minister about relations between Ukraine and NATO reflects the thought which prevails both among the political elite and civil society. Not all second the membership of Ukraine in NATO: only 1\4 of the people would like to support it. At the same time public opinion of Ukrainians trends into the membership in EU that it associates with high living standard.        17. On the other hand some Ukrainians and Russians dispute the entry of Ukraine into NATO. This became evident after numerous un-american appearances in Crimea at the end of May 2006 during the manoeuvres of NATO «Sea Breeze 2006». There is а question concerning the industrial elite that it could profit from the entry into NATO. Until the Ukrainian elite makes sure that Ukraine will profit from the membership in NATO, it should not make an exceptional choice which could harm it later. A. Dyubjen (а researcher from the Institute of strategic and international relations) said that the partnership of Ukraine with NATO does not exclude its partnership with Russia.  The rejection of the partnership with Russia could be on the contrary fatal for the Ukrainian aircraft industry as except the plane production „Antonow“  Ukraine does not work in order of “closed cycle”.
18.    Thus Ukraine should reach equilibrium between the East and the West. „The independent and prosperous space industry” is not realizable for Ukraine. It fails finance, technical and human resources for that.  Therefore the partnership with EU could give more extensible access to European markets and capitals. Ukraine suffers today from the acute budgeted deficit.
19.    But there are some evident problems. It is а question of the “Game for three” between Russia, EU and Ukraine concerning industry. The Europeans fear that а close partnership with Ukraine could cause the close of Russian market for them. The opposite is possible for Ukrainian industry too.  Besides, it would be taken account of USA factor.
20.    Another problem which is difficult for solving concerns the concept of „geographical restitution“. It means the return of vested capital in one or another form into the country that had put up this money. It can be purchase but the matter concerns trade rather then partnership.
21.    In spite of these problems EU regards that „the international partnership opens great opportunities for creation the European power in the field of space technologies and their use owing to the partnership with EU, Russia and new “space powers”.
22.    The institutional structure of relations between EU and Ukraine is defined by politic of neighbourhood which aim is to create а zone of secure prosperity and friendly relations. It is generally directed to encouragement of the economic and political reforms.  This politic is directed to the countries that have at present time no prospects for membership in EU but border on it. It leads to the gradual integration into home market. For example, EU recognized the status of market economy in Ukraine. Just on these grounds the Plan of actions UKRAINE-EU was subscribed at the 21. February 2005.  The new talks will start at the beginning 2007 about а new, more ambitious agreement about partnership and cooperation as the period of validity for actual agreement will be over at the end 2007. So the following months will be very important for the future development of the partnership. The new agreement that will be subscribed in 2007 can open а way to the real long-term prospects even EU restrains at the present moment to define prospects for entry of Ukraine as the Head of Committee H. M. Barosu said at the 10-th meeting UKRAINE-EU in Helsinki at the 27-th of October 2006.  On the other hand Ukraine is anxious for the real political association with EU and for the deeper economic integration. These themes will be crucial in the near future. The economical sphere is crucial for cooperation with Europe, and the entry of Ukraine into World Commerce Organization will be crucial for its relations with EU. This entrance does not only precipitate the evolution of strong economical and commercial relations, but can also lead to concluding а treaty about free trade. The integrated economical market undoubtedly furthers to cooperation between producers both in aircraft and in space fields.

V. Partnership
23.    The partnership between EU and Ukraine in aerospace sector is not sufficient. There are some concrete ideas concerning the partnership, especially in the sphere of strategic transport.
24.    The strategic air transport is one of the main needs of EU. The partnership of EU with Ukraine should first of all satisfy these needs.     For example, the Treat SALIS (makeshift about the strategic air transport) was subscribed at the 20. of October 2005. It corresponds with the needs of member-countries ^ It gives to the treaty countries which are mainly the members  of EU an access to the opportunities of  strategic transport in а short term (72 hours), but in а longer space of time for many-sided operations. Ukraine in partnership with Russian partners leases the airplanes Antonow 124 for operations of EU or NATO. This treat gives an opportunity for member-countries to advance its ability and to proceed to the rapid expansion of forces and equipment. EU lacks big transport aircrafts.  Antonow 124 can convey 150 and more tons of loads. This treat was subscribed of 16 countries, 14 from them are members of EU.
25.    The Antonow aircraft scientific technical complex is one of the leading Ukrainian centers in the aircraft sphere. Having а “Full cycle” of the aircraft construction Ukraine is nevertheless open for а broad international partnership. The situation in other branches of production is quite different, for example, the situation in rocket production where Ukraine can not provide the full cycle of production. Russia can do it in many branches. In this matter Ukraine can not manage without Russia. So it is very important not to make an exceptional choice.
26.      The partnership in aerospace sphere is based on the Treat of partnership in the framework of Global Navigation Satellite System (GNSS) between European Community and its member-countries, on the one hand, and Ukraine, on the other hand.  Galileo is а European project of strategic importance for Europe.   It should ensure its independence in the sphere of satellite placement. This system has а lot of various directions, in particular in air, sea and motor transportations.
27.    Galileo is the biggest project in partnership UKRAINE-EU in aerospace sphere. At the 7. of June 2005 Ukraine joined officially to the European System Galileo. The expansion of European Navigation System through geostationary covering on Ukraine (EGNOS) is mentioned also in the treat. This treat will develop the partnership in many branches of science and technology as well as of industry production, standardization and branch certification.  It is а first step of Ukraine along the lines of participation in EGNOS. Ukraine is the third from nonmember-countries, after China and Israel that signed the treaty Galileo. It had been chosen because of its particular lifelengths both in development sphere and production of satellite navigation system components.  The object of this partnership is expounded in the contract of partnership in the framework of public Global Navigation Satellite System (GNSS) between European Community and its member-countries and Ukraine. In the 4-th covenant of this contract the field of partnership is defined.  This covenant attaches the high importance to the contract since it permits to adapt and to extend the partnership depending on needs of а country, especially since the contract is active in the course of 5 years and its period of validity can be extended once for the same period.  At the same time covenants 7 and 8 appeal the contractual sides to extend the partnership in the sphere of investigations and development of partnership between industrialists by making of joint ventures.
28.    The intellectual property right is dominant. The contract includes numerous liabilities of the sides concerning necessity of data, intellectual, industrial and commercial securing.
29.    The actual aerospace partnership between EU and Ukraine is based first of all on civil aspects. It might be as well to extend it in military aspect. But any progress in partnership with EU remains а “hostage of politic”.

VI. Scientific and industrial potential
1. The field of space.
30.    Ukraine inherited one third of space-industrial potential of former Soviet Union. For further development of this field (the government defined this field as the most important) Ukraine created the National Space Agency which  assignment is to control and to trace the 30 settings, that is closely related to space activity and included the industrial enterprises, design offices, the military objects, research institutes and other organizations, included in this field.
31.    The most well-known organisations on the international scene are the state design office ”south” and engineering plant in Dnepropetrowsk, Komunar and Hartrom in Harkov, the radio-factory in Kiev, the National Centre of administration and tests of space facilities in Evpatoria, enterprise Chesar in Chernigov.
32.     Ukraine is considered as one of 6 leading countries in space field which owns the technologies both in manufacture of launchers and satellites and of their launching and controlling. The members of Committee which visited Ukraine (16-18 October 2006) could be made sure about level of competence of its specialists and about quality of industrial and research objects.
33.     According to the information coming from Ukrainian sources since of independence of Ukraine, the country made 90 launchings and orbited more than 200 satellites from 9 countries.   Ukraine has 5 systems of launching: cyclone 2 and 3, Zenit 2 I 3 SL and Dnipro.
34.     The system of launching Cyclone can launch satellites to low and elliptic orbits. This is reliable and safety system, wich includes atomizing operations of launching that are realized in Pleseck in Russia. The space system Zenit includes 2 launchers Zenit. It can lead out the freight up to 12,5 tons to circular  polar orbit; the place of launching is Bajkonur in Kazakhstan. Zenit 3 SL was made   in the context of project Sea Start – this is enterprise, in wich take part USA, Norway and Ukraine.
35.     In answering the question of member of Committee general director of National space Agency of Ukraine Alekseev explained, that Ukraine offered to Europe cooperation according to Zenit 3sl and Europe reported that this cooperation could lead to loss of jobs. He emphasized that the consequence of this decision Arianespace lost near 600 millions Euros and Europeans decided  to cooperate with Russia in question of launchers Soyuz.
36.     The space system Dnipro was made on basis of rocket Ss-18 and can be used for the ascent communication satellites for observation and scientific aims. Dnipro LV can be launched at any time, day and night, at any weather conditions and can orbit the satellites with the high level of reliability of satellites with mass of 1.7- 4.5tons. The place of launching is Bajkonur.
37.    The National Space Agency of Ukraine in this moment acts according to National space program of Ukraine for 2003-2007 in the context of its own work program. The main aims are the intensification of Ukrainian space industry, realization of international programs, reservation of private scientific and technological potential and creation of auspicious conditions for harmonious development of its possibilities and for more effective use in interests of Ukrainian economics, science, defence and safety.
38.    The Ukrainian space activity is based on constitutive legislation that includes two acts: about space activity (1996) and about state support to space activity (2000). Appearing from numerous presidential decrees the space activity is priority for Ukrainian government.
39.    Ukraine is а participant of the most important international negotiations in space sphere including Foundations Contract that regulates the state activity in exploration and using of space included the Moon and other heavenly bodies (1967), and Contract about creation  of general scientific and technological expanse for members of Commonwealth of Independent States (1995). Since its foundation NKAU signed 38 intergovernmental and interdepartmental agreements with 16 countries. Ukraine is а member of the most international organizations in space sphere, like UNCOPUOS (U. N. O. Committee on peaceful use of outer space, COSPAR (World Space Exploration Committee), IADC (Coordinating Interdepartmental Space Pollution Committee). It is also an active member of organization for non-proliferation of weapons of mass destruction.
40.    The acting projects of partnership concerning launcher include the above-mentioned Sea Start, Dnepr – in partnership with Russia, Land Start – with SINA and Russia and project Cyclone 4 with Brazil. Ukraine participated also in mainly international scientific-research programs included researches in space biology on the station World, studying of magnetosphere with the international program Interbol and а lot of other programs what shows once more scientific, technological and industrial level of this country.
41.    In Europe Ukraine gives the preference now to the partnership with European Commission and European Space Agency in the framework of the first European Space Program and participation in programs Aurora, Galileo (above-mentioned), GMES and FLPP (future launchers). The Ukrainian enterprises take а participation in the program Wega (а small launcher Arianespace) in partnership with Fiat Avia (Italy).
42.    On the other hand, the Program of technical support Bistro-2 of European Commission was completely realized. That concerns ensuring of incorporeal right security in the framework of commercialization of space technologies.  The project Bistro-3 is started which aim is determination of marketing mechanism of space technologies in civil sphere. NKAU participates in the whole project what concerns its organization aspects and legal support.
43.    The treat between EU and Ukraine concerning the program Galileo determines а lot of spheres of partnership: radio-frequency spectrum; scientific-research and educational; industrial activity; trade and market development; standardization, certification, regulatory measures; security, responsibility and compensation of expenditure. The treat provides also creation of joint ventures for realization of this program, use and development of the services of Galileo. Besides, subject of this agreement includes protection of intellectual, commercial and industrial property right which are related to the securing and servicing of the program Galileo for improvement of the partnership in production sphere.
44.    EU and Ukraine treat also for partnership in studying and realization of ground system architecture and made temporary terms with employment of the system EGNOS in Ukraine using ground infrastructure which includes the Ukrainian control stations.
45.    Besides, at the time of Salon in Burge in 2005 the Agreement on strategic partnership between Ukrainian government and the Company EADS was signed. This agreement concerns 5 possible branches of co-production: aircraft, space, defence, frontier observation and safe communication service. Resignation of J. Timoshenko which was the Prime minister at the time of significant and politic instability in Ukraine does not further the development of this agreement.  Only the question, concerned with the control for bounds and with secure communication, is today in the advanced stage.
46.    In the space field were made researches, concerned the launchers and satellites. In the time of visiting of the Committee the  leading Ukrainian space office “South”, the general director Konjuhov explained, that Ukraine tried to station the launcher Cyclone in Koru-the space European portal in the French Guiana, but it was not successful.  But finally from there launched the Russian settings Soyuz.    Then Ukraine began to work with USA.
47.     Director of enterprise „South" explained, that the launching of Soyuz from new settings in Koru cost for Europe more than 300 million euro. Modernization of Ukrainian setting Zenith would cost only 25 million euro;  the space budget of Ukraine is too modest for realization this project, then the cooperation is absolutely necessary.
48.     From the part of general director NSAU Mr. Alekseev said, that he couldn’t understand, why Europe considers only the space cooperation with China and India,  before it could cooperate with European countries, for example with Ukraine.
49.     Finally what concerned the cooperation between Ukraine and European space agency, we have to define, that the creation of work group was made early inasmuch as for Agency the entry of Ukraine is not the priority question.
50.     In this time the leading European aerospace enterprises have an interest to cooperate with “Pivdenmasch” in space projects of future: the launchers, satellites, the space researches, harmonization of legislation, ascent.  During the 2005-06 years took place the meetings between representatives of European space industry and Pivdenmasch. The absence of political agreement between ESA and NSAU is the barrier for large-format cooperation in space field between Europe and Europe.
51.     Proceedings could move forward quickly, when only ESA and NSAU provided all eventualities for attraction of space industry of Ukraine for its participation in European space programs and projects with the aim of establishment the mechanism which could allow concrete realization of   mutually beneficial tendency of cooperation. These mechanisms were already made and used in context of agreement of European countries, concluded of ESA with Poland, Hungary and Rumania. The entry of Ukraine to this agreement could cause the mutually beneficial cooperation in space field and could make instrument adopted for future development.
52.    The establishment of NSAU representation in Europe will   contribute to development of cooperation between space industry in Europe and in Ukraine.
53.    It could be also very well, if EU would make а request to the Ukrainian government regarding consideration of the most complete proposal about partnership between Ukraine and the European countries in aircraft and space branches. Such request packet could include the most prospective strategic directions of the work and should be considered of European Commission first of all.

2. Aircraft branch
54.     The Antonow aircraft scientific technical complex, as it is above mentioned, is а centre of vocational training in Ukrainian aircraft branch. From the time of foundation of the company by O. Antonow in 1946 it produced more than 22 thousands planes and exported 1500 from them in more than 50 countries. During this time the Antonow aircraft scientific technical complex produced more than 100 various plane classes.            Antonow planes are famous for their structural reliability, economic effectiveness, flexibility in transport companies, ability for using on non-asphalted runways and landing grounds, simplicity in operation.               Antonow complex is working now at the development of constructions for new prototypes, improvement of existing planes, their operational support and at prolongation of operation life. In this way three plane classes should be considered more detailed which are at the development stage and which are rated as the most interesting from technical and operational side and could be an object for partnership.
55.     AN124-100 is derived from An-124 Ruslan. It is а heavy transport plane of а broad activity ranging with maximum useful carrying capacity 120 tons. It can cover the distance 4650 km with complete loading or    9400 km with useful carrying capacity in 60 tons.  The top land speed is 850 km per hour. The cruising altitude is 8800-11600 m. It requires а length of the landing ground 2800 m and meets the requirements of EU and NATO.   The advantages of this plane in comparison with its American competitor E 17 are doubtless.
56.    26 planes AN 124-100 are now operated. The Antonow aircraft scientific technical complex produced а more powerful version of this plane: AN 124-100 М 150. Owing to its modification the maximum useful carrying capacity of it was increased from 120 to 150 tons and its mass at the take-off from 392 to 402 tons; it can cover with complete loading the distance in 5400 km (compared to  4650 km).
57.    The experts forecast that this plane will have а market value 1,8 billions  dollars till the year 2017 and  2.3 billions dollars till 2030. In 2005   Ukraine and Russia signed а Partnership agreement on production of this plane.   The Agreement provides co production of the first party from 15 planes An124-100 М 150. It should be added that partners in this program except the Antonow aircraft scientific technical complex are Gudritsh Hela and Gidro Germani.
58.    An-225 was produced for transportation in every place at the Earth а large dimension load that could be placed in the middle of fuselage or installed on its top.  The maximum useful carrying capacity is 250 tons; with useful load in а hold it can cover the distance in 4000 km; when the load is transported in outer container the distance depends on its mass and size and aerodynamic properties caused by them.
59.    The luggage space is 43,3 m long,  6,4 m wide, its height is 4,4 m, area 280 square m, size 1300 cubic m. So this apparatus can transport launchers, containers, cars, trucks and other vehicle.
60. Only one An-225 is operated by Antonow airlines, а commercial airline which is ownership of the Antonow aircraft scientific technical complex.      A designer purpose is the ability of using this apparatus as the first step for commercial starting of useful loading spaceward. Really, а multifunctional aerospace system MAKS developed in common with the Russian Federation will provide bringing into low orbit two cosmonauts and 10 tons loading or about 17 tons loading without pilot.
61.    The plane An-70 can transport а load of 35-47 tons for а distance 3000 - 5100 km flying up from the strip 1700 m.  The maximum flying distance is 6600 km with loading 20 tons.    In а version STOL (short flights and landing) Аn-70 can use the 700-meters the runway with loading 20-30 tons and with the maximum distance 3000 кm. According to all data, thanks to contemporary engineering and to efficient flexibility, peculiar Аn-70, its basic version can serve as а platform for making the particularized variants for example beginning with EWS (system of early  notification), to flying control-command post, including patrol  airplanes, airplanes-refueller or search and rescue airplanes.
62.     АN-70 made successfully all series of test-flights, its repetition work can begin in the factories of consortium Medium transport aircraft in Ukraine and in Russia.  The factory Aviant in Kiev has already begun assembling of the three first airplanes with series Аn-70 by request of military aviation of Ukraine.
63.    According to dates of the Antonow aircraft scientific technical complex, aviation experts from German company DASA exercised the characteristic Аn-70 by request of ministry of defence of Germany, in order to make а decision according to joint transport airplane. According to results, DASA and ministry of defence of Germany is disposed to development of this airplane in base Аn-70, consider the accordance of characteristic to European demands. Finely the interested European countries made   more political than technical or economical choice in favour of the Aerobus Military А 400м. Really, from the point of view of representatives of the Antonow aircraft scientific technical complex, а comparison between these two planes is evidently in favour of An-70 in inner content (400 cubic m for An-70 to 356 cubic m for А 400м) and in useful loading, range, ground bearing; not forgetting the price of each apparatus which amounts according to the data of the Antonow aircraft scientific technical complex 60 millions Euros for An-70 to 110 -120 million Euros for А400м. In addition to that, an expected price for operating of   An-70 during 20 years is 100 millions Euros and of А 400м - 250 millions Euros.
64.    After consideration of potentialities of Aerobus, Boing (С17), Lokhid (С130 J) and the Antonow aircraft scientific technical complex (An-70) six countries (Belgium, France, Germany, Spane, Turkey and Great Britain) signed through the mediation of the Organisation Conjointe de Coopération en matière dъarmement (OCCAR) а Treaty with Aerobus Military (27.05.2003) of development and production of 180 planes А 400м and means for their support. In April 2005 South Africa ordered 8 planes and Malaysia   in December that year 4 planes. Thus the partnership between West and East Europe concerning An-70 in this stage turns out very problematic unless impossible.

Summary
65.    The aircraft and aerospace industry of the former USSR was always а strategic branch and received accordingly powerful political and financial backing thanks to that it recovered really а high level of development. Ukraine got а big part of industrial heritage and did all possible for its keeping at а proper level.  The Ukrainian political elite realized very well the importance of aircraft and aerospace branch in which many politicians worked early.
66.    The Ukrainian government seconds completely an international partnership that is aimed at the development of scientific, technological and industrial potential and the partnership with Europe for development of satellite observing system. At the same time the military-transport aircraft is of especial interest for it. Such partnership is absolutely necessary from the point of view of them who wants approximation of Ukraine with Europe (in fact with EU and NATO). Its actual weakness strengthens only the arguments of the adherents of closer approximation with Russia due to the partnership with the West.
67.    When Russia took recently 5% of the company EADS the government of Ukraine should to wait for changes in European industrial, aircraft and aerospace branches. The director-general of the National Space Agency of Ukraine Y. Aleksejew raised an ironical question during а visit of the Committee in Ukraine if Bulgaria and Rumania really have such lead over Ukraine in the spheres of politic, economic and human rights that it is taking now one of the last places in the list of countries which pretend to enter into the European organizations.
68.    In the view of Europeans Ukraine is considered sometimes for to pro-american country that has а partnership with USA on launchers Zenith and byes the commercial planes Boing. Really, the state airline “International airlines of Ukraine” and private company “Aerosvit” should to the end of the year make а decision concerning buying of 20-30 planes for each company. The both companies    Boeing and Airbus do all possible to convince them to make а decision in their favor. Europe hopes that the choice will de done in favor of the company    Airbus that could open on the other hand the doors for extended partnership in aircraft branch.
69.    Really, such possible decision of Ukrainian side could raise in the view of reporters the interest of Europeans for sea patrol planes Antonow. On the other hand the industry of the West Europe is interested in production of helicopters. At this time Ukraine has 500 helicopters 10% from that are operational. So it needs to modernize and renew this park using the opportunities of partnership.   The participation of Ukraine concerning а European military-transport plane А400м is completely impossible taking into consideration the difficulties by which the European program had already confronted. The appearance of а new foreign partner will disturb the equilibrium which was reached so hardly.
70.    As а result there is sometimes such impression that the possible association agreements with Ukraine need for their successful realization а previous approval of Russia. In other words, possibility of partnership should not irritate Russia.  Ukraine, on the one hand, is а country that should solve а lot of political, economical and social problems and, on the other hand, it acts seriously in the course of approximation to Europe and possesses great abilities and potential especially in the spheres of aircraft and space. This is now of great interest and presents the importance for both sides of the possibly quickest realization of close partnership.


Actual events

On March 30, 2007 the Standing Delegation of the Verhovna Rada of Ukraine met with the Head of the Parliamentary Assembly NATO J. Lello that was in Kiev taking part in а round-table discussion on the high level concerning the role of the Parliament in the sphere of national security and defense.

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