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This article reports that Italy and Russia are expected to conclude by May the second phase of a joint research and development project that could lead to a new class of diesel submarine. The S1000 advanced attack submarine, a mid-sized boat displacing about 1,000 tons, would be affordable for a burgeoning export market, and a candidate for the navies of both countries. The project dates to a bilateral agreement between Italy and Russia that was signed in November 1996. The program did not go anywhere, however, until 2003, when it was restarted by Italy.

The article reports that major milestones loom for the Russian Regional Jet which should strengthen the industrial underpinning for the project. The aviation company Sukhoi Civil Aircraft's officials and their partners are expected to decide in May whether to build a 100-110-seat stretched version of the aircraft. Discussions with potential airline customers in the coming weeks will be critical in helping define an exact configuration. Several major European airlines have suggested they are interested in new 100-seat regional jets, a market the Embraer 190/195 now largely has to itself. A study is being performed to see how extensive the required changes would be to add seating capacity.

This article reports that barriers to industrial cooperation between Italian and Russian aerospace companies could be crumbling as a direct outcome of a recent meeting between Russian President Vladimir Putin and Italian Prime Minister Silvio Berlusconi. Companies on both sides recently devised several agreements targeting cooperation on everything from commercial aerospace to military manned and unmanned aircraft to space. But observers have worried that good intentions would be stifled by Russia's notorious bureaucracy that has often stood in the way of such agreements.

This article reports that the Russian government is planning to allocate $300 million over the next three years to help finance development of Sukhoi Co.'s regional jet program. Sukhoi has already clinched a deal with a group of Russian banks totalling $100 million in loans backed by the state guaranties, and is in talks with the European Bank for Reconstruction and Development for more loans. Development of the aircraft is estimated to cost $670 million. Sukhoi already has invested some $70-80 million of its own funds in the program.

This article discusses Russia's acquisition of Western defense technology from Italy and other European nations to fill holes in its defense program. Topics include Russia's purchase of French Mistral helicopter carriers, the country's search for Western armored fighting vehicles (AFVs) such as the Italian Freccia Veicolo Blindato Medio (VBM), and Russia's desire to customize the acquired foreign systems to allow its own AFV industry to acquire additional skills.

The article reports on the unveiling of the Superjet 100, manufactured by Russia's Sukhoi Civil Aircraft Co. (SCAC) and Italy's Finmeccanica. Russian certification of the aircraft is due in 2008 and European Aviation Safety Agency type certification in the first half of 2009. For now, the focus for the two companies is getting the aircraft to first flight and then into the hands of launch customer Aeroflot in November 2008.

This article reports that Airbus Industrie SA has signed with Russia for freighter conversion and is nearing a deal with China to open another A320 final assembly line there. Airbus expects to convert A320s and A321s into freighters near Moscow starting around 2011. The work will be done cooperatively between Airbus's EFW facility in Dresden and Russian aircraft makers MiG and Irkut. The market is estimated at 900 for the aircraft type, and Airbus expects to win at least 50%, according to Gustav Humbert, Airbus CEO.

The article informs that after lengthy negotiations, Italy and Russia have inked an agreement to secure Finmecannica's role in the Russian Regional Jet. The partnership has still some details to be ironed out. Under the terms of the agreement protocol signed on April 21 in Moscow between Italian industry minister Claudio Scajola and his Russian counterpart, Viktor Kristenko, Finmeccanica will commit $300 million to the venture and become a full partner, through its Alenia Aeronautic unit, in the Sukhoi Civil Aircraft Company, with a stake of more than 25%. The main obstacle has been Russian legislation, which does not allow foreign companies to own more than a 25% stake in Russian aerospace companies.

This article reports that the Italian aerospace companies are becoming increasingly active in Russia, including in the emerging and still sensitive arena of unmanned combat. One venture that could push the bounds of technology sharing--a link between Aermacchi and Yakovlev to cooperate on unmanned aircraft--still needs endorsement from the defense ministers of both governments. Yakovlev has quietly been lobbying for Russian unmanned combat aircraft technology using the Yak-130, while Aermacchi earlier this year began flight testing its own unmanned aerial vehicles.

The article reports that Tetraedr has released the T38 Stilet surface-to-air missile (SAM) as it starts its air-defense ventures. The missile is an innovation of the Russian OSA-AKM SAM made in Russia and is part of the Stilet initiative that has been implemented in Russian air defense systems since 2002. The main purpose of T38 missiles is to intercept fixed- and rotary-wing planes and cruise missiles, although it can also destroy air-launched weapons.

The article reports on the growing trend in the construction of antiship missiles despite the threat they pose on sea power. According to the author, China, India, and South Korea are intensifying their navies by including carrier battle groups. He adds that Russia's proliferation of advanced antiship missiles is raising doubts over the effectiveness of Western ship defenses. He mentions that several features of antiship missiles are becoming dangerous, including the radar and infrared stealth designs and improved electronic countermeasure capabilities.

The article reports on the installation of bigger-caliber guns into tracked and wheeled infantry fighting vehicles (IFVs). Western IFVs were equipped with 20-millimeter automatic cannons originally intended for aircraft. On the other hand, the Russians introduced the low-pressure, smooth-bore 73-millimeter. Among the high-caliber guns available for IFVs are the ATK Bushmaster Mk44 and Rheinmetall's Rh503 cannon.