MOSCOW (AFP) - US aerospace giant Boeing has pledged to invest 2.5 billion dollars (1.9 billion euros) in the Russian aerospace industry with an eye for help in developing its next-generation 7E7 Dreamliner jets, officials said.
The memorandum of understanding foresees investments over the next five years and was signed Wednesday in Moscow by Energy Minister Viktor Khristenko and Boeing president and chief executive Harry Stonecipher, Boeing said in a statement.
Boeing is inviting Russian companies to bid on design and construction projects for the plane, which is due to make its maiden flight in 2007 and begin service one year later.
The 7E7 Dreamliner is in direct competition with European aircraft maker Airbus's planned double-decker A380, which is due to enter service in March 2006.
"Russian expertise and quality have delivered tremendous value to our products," Stonecipher said in a statement.
"Together we will search out an array of opportunities for partnership on the new 7E7 Dreamliner that will help ensure the success of this game-changing new airplane program," he said.
Stonecipher said that Boeing would tap the Russian Academy of Science and at least two Russian aviation institutes for potential assistance.
The US giant has operated a design center in Moscow since 1992, the first year of Russia's post-Soviet independence. Its staff is expected to grow to 450 people in the coming months.
Boeing also signed a separate agreement to supply titanium components for the jet with Russia's Verkhnyaya Salda metallurgical production association.
11/18/2004 - 18:08 GMT - AFP