Rubtsov said that between 2005 and 2007, IFC planned to offer 33 jets for leasing, three in 2005. IFC expected the agreement on delivery of six Il-96s with Aeroflot, Russia’s major air carrier, to be approved late in May or early in June. Shareholders of the two companies would meet to approve the deals, the official said.

Both parties seek agreement on key aspects of delivering Il-96s and the financial details. After approval, aircraft production will start. The first jet will be delivered in 18 months, the second around a month later. Aeroflot and IFC signed agreement on the supply of 6 Il-96s late in 2003.

IFC twice increased investment in acquiring aviation equipment in 2004 to RUR4.172bn (about USD149m), Rubtsov reported, noting that KrasAir leased two Il-96-300s. IFC funded construction of four Il-96s and four Tu-204-300s, due for export in 2005-2006. The International Finance Corporation funded acquisition of aeronautics equipment using its own capital, which by the end of 2004 was RUR5.345bn (about USD190m).

In March, IFC’s working capital totaled RUR6.24bn (about USD223m). It contributed more than 67 percent to the equity of IFC. A large share of working capital hampered return on equity and made it impossible to exploit all advantages of financing raised, but this made the financial structure of the company highly reliable, Rubtsov said.

Last year, IFC raised about USD61 million in loans and secured a credit line worth USD43 million early this year. It is distributing short-term notes on the open market, Rubtsov said. The company would increase the share of raised funds in its capital to 60-65 percent. Russia’s Property Ministry owns a 38-percent stake in IFC.