Contributor

Mark Huber

Ukraine-related sanctions have triggered the UAE’s equity exit from Russia’s VRT500 single-engine, coaxial helicopter program. The UAE had taken a 50 percent stake in the program—an estimated $400 million investment—via the Abu Dhabi-based Strategic Development Fund (SDF) and Singapore-based Aeroter. SDF is the investment arm of the UAE government’s Tawazun Economic Council.
SDF is in negotiations to develop the helicopter independently in the UAE along with a companion product, the coaxial rotor VRT300 unscrewed aerial vehicle. Establishing a final assembly line for the VRT500 in the UAE was contemplated when SDF made its original investment, part of a deal for Tawazun to eventually purchase 100 of the aircraft—a deal valued at $248 million in 2021. Tawazun is the UAE defense and security acquisitions authority for the UAE Armed Forces and Abu Dhabi Police.
Rostec’s Russian Helicopters had hoped to market the VRT500 worldwide. As part of a strategy to ease Western certification, its VR division acquired Italy-based Vertex Aero from the Mecaer Aviation Group in 2020. Vertex holds EASA design organization approval, and plans had called for the Pratt &amp; Whitney Canada PW207V-powered aircraft to be initially manufactured in Italy.

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Ukraine Sanctions Prompt UAE Equity Withdrawal from VRT500 Helicopter Deal

UAE may develop the VRT500 coaxial helicopter independently 

Ukraine-related sanctions have triggered the UAE’s equity exit from Russia’s VRT500 single-engine, coaxial helicopter program.