Bombardier says economic sanctions against Russia could delay $3.4B project
Bombardier Inc. says economic sanctions imposed on Russia could have an impact on the timeline of the company's plans to set up a plant in the country.
The Montreal-based giant was hoping to conclude negotiations this year with Russian company Rostec for the assembly of 100 Q400 regional turboprop aircraft in a project estimated at $3.4 billion.
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Company spokeswoman Marianella Delabarrera says Bombardier (TSX:BBD.B) is now being "realistic" about the possibility the project will be ready later than originally expected.
Foreign Affairs Minister John Baird announced this week that Canada would slap sanctions against more Russian individuals and entities, including government agencies, over that country's continuing military actions against Ukraine.
Canada has so far imposed sanctions against 110 individuals and entities.
Delabarrera says Rostec has not been targeted by the sanctions and that talks with the Russian company will continue.