Report on the results of
X International Aviation and Space Salon AVIASVIT - XXI

Official statements on the exhibition:

Oleksandr Тurchynov
Secretary of the National Security and Defence Council of Ukraine

"Arms and Security - 2016" and "Aviasvit - XXI" feature the most grand - scale demonstration of accomplishments in defense and aerospace industries throughout the whole period of Ukrainian independence.
Joint format of "Arms and Security - 2016" Exhibition and Aviation and Space Salon "Aviasvit - XXI" will contribute to addressing complex challenges of modernization of the equipment and armaments manufactured in Ukraine and development of new advanced models taking into account the best practices of foreign partners.

Stepan Kubiv
First Vice Prime Minister of Ukraine – Minister of Economic Development and Trade

Today, similar exhibitions are popular worldwide. This interest is quite understandable. Armaments, military equipment and aerospace technology are all important constituents of the exports of high technology products. In the increasingly competitive environment and forced militarization of our country, it is defense enterprises that actively integrate and develop high - technology manufacturing that is capable of producing high - tech products.

On October 11, 2016, the eve of the Day of Defender of Ukraine, XIII International Specialized Exhibition "Arms and Security – 2016", X International Aviation and Space Salon "Aviasvit – XXI", and XV International Exhibition Forum "Protection Technologies – 2016" opened their doors to the visitors of the International Exhibition Centre.

The exhibitions were officially opened by:
Secretary of the National Security and Defence Council of Ukraine – Oleksandr Turchynov
Minister of Internal Affairs of Ukraine – Arsen Avakov
Minister of Defense of Ukraine – Stepan Poltorak

Official opening ceremony participants:
Chief of the General Staff and Commander-in-Chief of the Armed Forces of Ukraine – Viktor Muzhenko
Commander of the National Guard of Ukraine – Yuriy Allerov
Head of the State Border Service – Viktor Nazarenko
Deputy Minister of Economic Development and Trade of Ukraine – Yuriy Brovchenko
Director General of SC Ukroboronprom – Roman Romanov
General Director of International Exhibition Centre Ltd. – Anatoliy Tkachenko

Foreign guests of honor:
Head of the National Security Bureau of Poland – Paweł Soloch
Minister of Defense of Romania – Mihnea Motoc
Minister of Defence Production of Pakistan – Rana Tanveer Hussain
Defence Attaché of the British Embassy in Ukraine Captain 1^st Rank Royal Navy – Karen McTear
and other representatives of the diplomatic corps.

Exhibition was covered by 278 media representatives from 182 accredited media resources, including 15 foreign media such as the Press Agency of the Ministry of Defense of France, Jane's Defence Weekly, Associated Press, BBC News, Radio France Internationale, European Security and Defence Mittler Report Verlag, Lundi13, Phoenix Satellite Television Holdings Limited, Xinhua News Agency, Polskie radio, Polish Press Agency and others.

The exhibition program comprised 32 scientific and presentational events.
Joint format of the exhibitions made them a large - scale international business and scientific forum dedicated to the full range of issues of defense and security of state and society. In general, three exhibitions covered the total space of over 30 000 sq.m – 26 000 sq.m in three halls indoors and over 5 000 sq.m outdoors. The total number of exhibitors – 477 companies, including 45 companies from 16 foreign countries (China, USA, Switzerland, Sweden, United Arab Emirates, Belarus, Poland, Czech Republic, Italy, Israel, Great Britain, Belgium, Finland, France, Ireland).

At the invitation of the Ministry of Defense of Ukraine and SC Ukroboronprom, the exhibition was visited by official delegations from 12 countries:
1. Poland – Head of the National Security Bureau
2. Romania – Minister of National Defense, Deputy Chief of General Staff
3. Czech Republic – Deputy Minister of Industry and Trade
4. Pakistan – Minister of Defense Industry, top officials of the General Staff of the Land Forces, representatives of the defense industry
5. Qatar – Chairman of the Military Industrialization Committee
6. Slovakia – representatives of the Ministry of Defense
7. Hungary – representatives of the Space Bureau of the Ministry of National Development
8. Latvia – representatives of the Ministry of Defense
9. Lithuania – representatives of the Ministry of National Defense
10. Bahrain – representatives of the Ministry of Defense
11. Nigeria – representatives of the Ministry of Defense
12. United Arab Emirates – representatives of defense institutions

Over 18,000 professional visitors attended the exhibition throughout its duration.
In general, there is a growing interest in Ukrainian defense industry from foreign companies. The representatives of approximately 100 companies from 24 countries (Canada, Sweden, Finland, France, Spain, Czech Republic, Poland, Lithuania, Latvia, Netherlands, UK, USA, Georgia, Belarus, Turkey, India, Pakistan, Kuwait, Egypt, Bangladesh, South Africa, Saudi Arabia, Bosnia and Herzegovina, Australia) were among the guests of the exhibitions.

When commenting on the expositions presented within "Arms and Security - 2016" and "Aviasvit - XXI" exhibitions, Chief of General Staff – Chief of the Armed Forces of Ukraine noted a significant increase in the scale of these events that are crucial for the country's defense capability and also in the number of offers that could be beneficial for Ukrainian army. Besides, Viktor Muzhenko stated that this year he was especially pleasantly surprised by private defense companies that displayed many new development initiatives which they worked up taking into account the features that may be required by the Ukrainian army in the modern context.

The joint exposition of Ukrainian space industry companies presented at X International Aviation and Space Salon "Aviasvit - XXI" comprised Yuzhnoye State Design Office (Dnipro), Yuzhmash (Dnipro) and Arsenal Factory (Dnipro). Booths of the companies offered upcoming carrier rockets and models that are already in operation, models of engines, spacecraft, advanced developments of Grom cruise missile and Korshun missile.

Booths of the world famous leaders of the aircraft industry – Antonov Company, Motor Sich and FED, as well as of Ukroboronprom enterprises engaged in aircraft repair, displayed equipment for various aircraft systems, latest developments in the field of aircraft engineering, aircraft and helicopter armament, air defense systems and airborne reconnaissance systems.

Top management of Antonov Company discussed the company's initiatives regarding consolidated government orders for aircraft manufactured in Ukraine with representatives of the Ministry of Defense, State Emergency Service, Ministry of Internal Affairs and Security Service of Ukraine. In addition to financial benefits, arranging Antonov aircraft operation by government agencies will facilitate their expansion into international markets. In such a way, the increase in the serial production of aircraft leads to the decrease in their prices, thus increasing marketability of Antonov products and the number of jobs both in aviation and related industries.

Director General of the Plant 410 CA Viktor Gankevich held a series of meetings with top managers of Ukrainian aircraft companies, as well as representatives of foreign companies. During Czech - Ukrainian Aviation Industry Forum, Plant 410 CA presented its services in the framework of business relations with Czech colleagues, focusing on aircraft repair and modernization, and familiarized with the latest advances in R&D, manufacture and repair of aircraft.

"Aviasvit – XXI" also featured two noteworthy national pavilions: Czech companies, among other exhibits, displayed powerful turbine engines, while companies from the UK presented their offers in armaments, jet and turboprop engines, on-board equipment for different types of aircraft, and components for aerospace industry.

Expositions of the companies engaged in development and production of light aircraft and helicopters were arranged, it seemed, in order of seniority. First in line were Motor Sich, dating back to 1907, and its business partners Ivchenko - Progress, which was founded 70 years ago, and Experimental Design Bureau of General Aviation, which has been operating in the market for more than 25 years.

The next one was the display of Aerocopter Design Bureau, founded in 1999, which featured a well-known AK 1-3 two-seater helicopter. Already manufactured in the number of 100 units, these helicopters are currently operating in 17 countries, being applied in general aviation, agriculture, police monitoring, as well as by flight training centers.

Next in line was STC Horizont. The company was founded in 2007 and has already gained reputation of one of the most advanced small companies in Europe due to its state-of-the-art production equipment and application of latest technologies. Its product, three - seater helicopter SL-231 SCOUT, was presented virtually in the center of "Aviasvit – XXI" exposition of light aircraft. When developing this helicopter, its manufacturers did not want to take from prototypes, trying to make their helicopter "from scratch" on basis of high strength, modularity, production and operational design for manufacturability of the power units, above all.

ANG is half younger in comparison to STC Horizont, but its employees managed to do much for the development of general aviation in short time, e.g.: foundation of a flying club, construction of an airfield, developing design of a new aircraft, building an enterprise for its manufacture in Brovary and airport Gogoliv airfield. During the exhibition, the company showcased aircraft LA-50 which attracted much attention of visitors. In the nearest future, the aircraft awaits completion of its hydraulic system design and power plant. Therefore we expect to see an improved LA-50 at the next salon in 2018.

History of "Aviasvit – XXI" newcomer, RUD Aero, officially began in Florida (USA) in 2012, but with a Ukrainian founder. The company displayed its 2 planes – aerobatic aircraft RA-2 Unlimited Acrobatic and training aircraft RA-23. When developing aircraft, the engineers had the task to create an aircraft suitable for basing at unprepared airfields, which are commonly found in Ukraine. The company is currently developing a training aircraft for military pilots and we hope to see it at the next "Aviasvit – XXI".

The most notable booths among companies engaged in the supply of avionics, software, equipment, tools, materials and other products for aircraft engineering companies were the ones of Stork (Kyiv) and Aerotech (Dnipro). Besides its foreign partners' products (Microtechnika Praha, Becker Avionics, Esterline CMC Electronics, Levon Aviation, Euro Avionics), Stork showcased its own products – airborne equipment system for medium helicopters based on a universal digital on-screen display system.

Aerotech presented trackers for monitoring of moving objects and products of its partners Av-Tek for GPS monitoring applied during chemical works.

Aircraft engineering companies were also interested in machine - tool builders. Engineering Center VariUs is well-known among experts of many Ukrainian aircraft engineering companies as a technological process developer and supplier of CNC equipment, as well as metal cutting tools and software. According to professionals, the main advantage of working with VariUs is the implementation of any project starting from drawing to manufacture of a test sample at the implemented equipment.

Due to the ever-increasing number of aircraft engineering companies working with composites, booths of Ukrpromvnedrenie and B2B Aviation Trading enjoyed particular attention of visitors. The companies displayed E-glass fiber, fabrics, reinforcement materials for composites, kevlar, fiberglass - based heat and light resistant materials, composites, adhesives, tapes, abrasives, sealants, etc. to the visitors of "Aviasvit – XXI".

PREMIERES

At their joint exposition, Motor Sich and Ivchenko - Progress unveiled experimental aircraft UTL-450 with AI-450S turboprop engine. After successful flight tests, UTL-450 may become one of the preferred aircraft for basic training of military pilots' flying skills, provide support of front - line pilots' and reservists' flying skills.

Other showcased products included D-436-148FM turbojet engine, turboshaft engines of TV3-117VMA-SBM1V 4E series and AI-450M. Lubny Machine Tool Plant (part of Motor Sich) presented a number of machine tools.

Ukrainian company Ukrspecsystems unveiled two unmanned aircraft systems: PD-1 and PC-1. PD-1 is a lightweight UAV with a wingspan of 3 meters, equipped with ICE (internal combustion engine). It is suitable for surveillance and other purposes. The UAV is equipped with digital encrypted data channel with a high level of protection against any interference. PD-1 has up to 8 kg of carrying capacity (excluding fuel). The maximum takeoff weight is 33 kg. The machine iis capable of carrying any payload without balancing. Its flight time is 5 hours (for basic configuration).

Orizon-Navigation showcased the new display unit. This unit is the hardware designed to be applied on ground vehicles. One of the features of the display unit is the capability to operate under extreme conditions from -30ºC to +50ºC and resist the shocks of repeated exposure with peak shock acceleration of 147m/sq.s and duration of 5 to 10 ms. In addition, Orizon - Navigation demonstrated a new modification of satellite navigation equipment CH-3003MN. In practice, it is a modernization of CH-3003M designed for portable personal use. It is twice smaller in size and has improved performance characteristics.

Helitraining Ukraine unveiled a flight simulator for MI-24PU1 helicopter pilots. The simulator is commissioned by Motor Sich for the benefit of the Ministry of Defense of Ukraine. According to the company, the simulator is capable to simulate all kinds of flights, including flight at night, with night vision goggles and in adverse weather conditions, and to create extreme situations related to the failure of aircraft flight control system.

One of the surprises featured at this year's edition of "Aviasvit - XXI" were aircrafts produced by the salon's newcomer, RUD Aero (USA). Its Kyiv office showcased aerobatic aircraft RA-2 Unlimited Acrobatic and training aircraft RA-23.

Adron Research & Development Company unveiled aerodynamic guidance system ADROS BAU-01K. This BAU facilitates 3x increase in hit probability, which leads to 6x-30x decrease in consumption of aerial bombs. It is noteworthy that wingless version is currently in the final testing stages and its performance is impressive. Winged BAU is undergoing factory testing, but taking into account the results of its younger brother, it won't lag behind in its capabilities.

PUBLIC PREMIERES BY SC UKROBORONPROM

Antonov Company unveiled a full - scale aerodynamically shaped model of Horlytsia UAV which will become a part of the future tactical unmanned aerial system. The project aims to create the first Ukrainian tactical UAV with the world - class performance characteristics. It is designed for real - time aerial reconnaissance and intelligence, target designation and artillery fire spotting, arrangement of operational communications for intelligence units under the conditions of electronic countermeasures. Besides, the exhibits on the display included aircraft models of regional jet airliners An-148/An-158, transport aircraft An-70, An-178, An-132, An-124-100-Ruslan.

SpetsTechnoExport displayed its new UAV – ANSER. Main distinguishing features of the unmanned aviation system include the capability to stay airborne for 6 to 12 hours, carry a payload of 5 kg and use fully encrypted digital data channels. The weight of the aircraft is 23 kg.

HIGHLIGHTS

Visit of the Minister of National Defense of Romania
On the first day of "Arms and Security - 2016" and "Aviasvit - XXI" exhibitions, Secretary of National Security and Defence Council of Ukraine Oleksandr Turchynov had a meeting with the Minister of National Defense of Romania Mihnea Motoc. During the meeting the parties discussed intensification of Ukrainian - Romanian cooperation in defense and security industries as well as cyber security and cyber defense, paying particular attention to combating hybrid (including information) warfare. In addition, Mihnea Motoc stated that there is a "significant progress in reforming the security and defense industry of Ukraine." He stressed that, under these circumstances, Ukraine may count on practical and political support of all of its efforts in this field.

Visit of the Head of the National Security Bureau of Poland
Head of the National Security Bureau of Poland Pawel Soloch paid a visit to Ukraine within the framework of the Protocol on Cooperation between Secretariat of National Security and Defense Council of Ukraine and National Security Bureau of Poland. During his visit to Ukraine, Mr. Soloch attended Arms and Security - 2016 and Aviasvit - XXI and took part in the opening ceremony.

After the meeting with the Head of NSB of Poland, Secretary of the National Security and Defence Council Oleksandr Turchynov noted that Poland has been, and is, an important strategic partner of Ukraine. According to Mr. Turchynov, the issues discussed by the parties included cooperation in defense and security industry, reforming the Armed Forces and law enforcement agencies, and transition to NATO standards, taking into account the Polish experience.

Visit of the Deputy Minister of Industry and Trade of the Czech Republic
On October 12, 2016, Minister of Industry and Trade of the Czech Republic Vladimir Bärtl visited X International Aviation and Space Salon "Aviasvit - XXI" and participated in the opening ceremony of Czech - Ukrainian Aviation Industry Forum held as part of the Salon's event program. The Forum was aimed at establishing contacts between Czech and Ukrainian aircraft manufacturers and assessing the possibilities of direct industrial cooperation in the aviation industry.

Czech-Ukrainian Aviation Industry Forum
The Forum was opened by Zdenka Caisova, Chargé d'Affaires of the Czech Republic in Ukraine. Deputy Minister of Industry and Trade of the Czech Republic Vladimir Bärtl and Deputy Director General of SC Ukroboronprom Denis Gurak delivered their speeches as an introductory part of the Forum. Mr. Bärtl noted high level of the aviation industry in the Czech Republic and great potential for direct cooperation with Ukrainian partners in this industry. The cooperation may include the fields of construction of airports, legislation, R&D, etc. Mr. Gurak highlighted the importance of the Forum for initiating joint aviation projects.

In general, the forum was attended by 17 Czech and Ukrainian aviation industry companies and institutions. The first part of the Forum contained presentations by the Association of Aerospace Manufacturers of the Czech Republic, Moravian Aviation Cluster, Alucast, Aerospace Research and Testing Institute (VZLU), PBS Velká Bítes, Jihostroj, LOM Praha, Unis, TC Inter - Informatics, ATG. Ukrainian companies were represented by Antonov Company, Motor Sich, Ivchenko - Progress, FED, Plant 410 Civil Aviation, Volchansk Aggregate Plant, Ukrainian Research Institute of Aviation Technology.

The second part of the Forum comprised B2B negotiations aimed at establishing direct contacts between Czech and Ukrainian partners and discussing offers on possible industry cooperation. As the conclusion of negotiations, the parties agreed that the development of cooperation in the aviation industry will be coordinated by the Association of Aerospace Manufacturers of the Czech Republic from the Czech Republic, while Ukrainian Research Institute of Aviation Technology will be in charge from the Ukrainian side.

The Forum was arranged in coordination with the Association of Aerospace Manufacturers of the Czech Republic, CzechTrade Ukraine, Ukrainian Research Institute of Aviation Technology and SC Ukroboronprom. The event was held within the framework of the project for support of the economic diplomacy by the Ministry of Foreign Affairs of the Czech Republic and Ministry of Defense of the Czech Republic.

Signing of the Letter of Intent between Antonov Company and Esterline Belgium
One of the noteworthy events during Aviasvit - XXI featured Belgian company Depicon. Ambassador of Belgium in Ukraine Mr. Luc Jacobs attended the signing of the Protocol of Intent on Treality visualization system for An-132 between Antonov Company and Esterline Belgium (Belgian office of US company Esterline) represented by Depicon. According to the General Manager of Depicon Hans Desprez, this event will only strengthen cooperation between the two companies, taking into account the fact that Antonov Company and Esterline signed a contract on integration of CMA-9000 Flight Management System, CMA-5024 GPS Sensor and MFD-2068 Multi-Function Display for AN-148 earlier this year.

Presentation of Regional Innovation and Investment Project on Public-Private Partnership
X International Aviation and Space Salon "Aviasvit - XXI" featured presentation by three Kharkiv - based companies (FED JSC, Kharkiv Machine - Building Plant FED State Enterprise and Kharkiv Aggregate Design Bureau) of the Regional Innovation and Investment Project on Public - Private Partnership.

The issue of raising equity and private capital in the aerospace industry is settled in the US, Canada, EU and China. In Ukraine, the relevant law was passed, but it turned out to be unfinished and is aimed at other tasks, while not taking engineering industry into account. The package of bills aimed at supporting aircraft engineering industry is intended to expand the opportunities for raising private capital, according to Viktor Popov, Chairman of the Board of FED.

At this stage, the issue of implementation of the Regional Innovation and Investment Project on Public - Private Partnership is submitted for discussion of the Council of the Aircraft Cluster "Ukrainian Aircraft Corporation". The initiators of the project stated that the participating companies will be able to consolidate their capacities and work more efficiently. On the one hand, this will result in the increase in profits and, accordingly, tax revenues. On the other hand, there will be the decrease in production costs due to the absence of double taxation of cooperative deliveries.

Presenting of the certificate of the National Transport Office of Hungary to Motor Sich
As a result of long and fruitful cooperation between Ukraine and Hungary, Motor Sich was audited by Hungarian aviation authorities. At "Aviasvit - XXI", President of Motor Sich Vyacheslav Boguslayev was awarded a special certificate for the repair and modernization of Mi helicopters that are in service in the armies of various European countries. "This document enables us to take firm position in the European market with our Mi-8 helicopters and gearboxes, which we have mastered to repair. It also offers new perspectives in aircraft engineering, maintenance of aircraft, which is capable of many years of service ahead", - said Director of Corporate Rights and Investments of Motor Sich Volodymyr Semenov.

Meeting between the top management of leading British defense companies and Ukroboronprom
The exhibition hosted a meeting between the top management of leading British defense companies and Ukroboronprom. During the meeting, top management of BAE Systems, GE Aviation, Marshall Aerospace and Defense Group, Heroux Devtek and other companies had a chance to review a reform strategy of the defense industry of Ukraine. Particular attention was paid to the need to deal with legal barriers regarding expansion of cooperation, as foreign companies are interested in joint projects and in a whole new level of cooperation.

Signing of the cooperation agreement between Ukrinmash and Havelsan Hava Elektronik Sanayi
Ukrinmash, which is part of the SC Ukroboronprom, and Turkish company Havelsan Hava Elektronik Sanayi signed a cooperation agreement on the manufacture of passive radar systems at the capacities of Ukroboronprom enterprises.

ІV International Scientific Conference "Challenges of coordination of military technical and defense industry policies in Ukraine. Prospects of development of armament and military equipment"
Within the event, organizer of the conference Central Research Institute of Armament and Military Equipment of the Armed Forces of Ukraine, held 4 workshops on prospects of development of armament and military equipment for:
- Land Forces
- Air Forces
- Special Forces
- Naval Forces

The conference was opened by the Deputy Minister of Defense of Ukraine Igor Pavlovskyi. The event was attended by over 200 military experts, military attaches, and chief designers of the leading Ukrainian defense industry companies.

Ukrainian-American discussion panel
Ukrainian-American panel discussion on defense cooperation and export control was held attended by the representatives of the US and Ukraine defense industry, Ministry of Economic Development of Ukraine, State Export Control Service of Ukraine, Ministry of Defense of Ukraine and General Staff of the Armed Forces of Ukraine.

As part of the discussion panel, there were presentations held on the functions of the Bureau of Industry and Security, trade in dual-use products between the US and Ukraine, as well as the reform strategy of the defense industry of Ukraine. Besides, among the topics discussed were Ukrainian - American defense cooperation and reforms required to improve it.