OREANDA-NEWS. December 17, 2010. Joint Stock Company United Aircraft Corporation’s headquarters hosted a regular Corporation’s Board of Directors’ meeting chaired by Mr. Sergei Ivanov, Deputy Prime Minister of the Russian Federation. The meeting’s agenda included the issues on UAC development strategy on the period from 2011 to 2025, and on the progress of the UAC corporate restructuring. The BoD also examined the issues of the current state and prospects of the following projects: Tupolev Tu-204SM, MTA and MS-21.

After considering the UAC updated development strategy the BoD commissioned the Corporation to present the BoD members by the end of 2010 the document on UAC development strategy on the period from 2011 to 2025 revised in accordance with the comments and suggestions contributed at the meeting.

The BoD took into consideration the information on the UAC corporate restructuring progress inter alia the event schedules on establishment of the UAC business units. The corporate restructuring is being undertaken in accordance with the decisions adopted earlier by the Company’s BoD.

Since the formation of the business units is one of the key factors to achieve the aims of the Corporation’s development strategy, the BoD commissioned the UAC Executive Board to further examine the issue on the Corporation’s business units formation principle and order. This issue along with the document on the Company’s development strategy from 2011 to 2025 will be on the agenda of the UAC BoD’s next regular meeting.

One of the first practical stages of the restructuring process is the reorganization of JSC Taganrogskaya Aviatsiya (TAVIA) and JSC BERIEV Aircraft Company by means of takeover of the first company by the second one. The BoD approved the reorganization procedure that provides for all registered ordinary shares of JSC TAVIA to be converted into additional registered ordinary shares of JSC BERIEV Aircraft Company.

The BoD approved the report on implementation of the UAC 2010 budget in the first half of the year and the forecast of its implementation in 2010. The BoD also approved the adjusted budget for 2010.

The BoD approved UAC’s participation in increase of the authorized capital of JSC Nizhny Novgorod Aircraft Building Plant Sokol (JSC NAZ Sokol). JSC UAC plans to acquire the plant’s additional shares worth RUR 1.6 billion. This acquisition will allow to significantly facilitate the enterprise’s debt and to improve its balance structure.

The BoD also examined and approved a number of related party transactions between the JSC UAC and its subsidiaries. The transactions are aimed at financing the production activities of the Corporation’s subsidiaries.