Tupolev JSC and its Kazan Aviation Production Association (KAPO) division have been ordered to repay 6.2 billion rubles ($80 million) to Tatneft, one of russia's largest oil producers. The debt stems from a contract breach involving four Tu-214 passenger aircraft ordered for Tatneft’s subsidiary airline, UVT Aero. The decision of the Arbitration Court of Tatarstan was reported by russian industry media.
The order, placed in advance, included a 5 billion ruble ($63 million) prepayment, but not a single aircraft was delivered. The first two Tu-214s were due in October 2024, with the remaining two scheduled for September 2025. In response to missed deadlines, Tupolev and KAPO claimed they were "overloaded with state defense orders" and proposed to delay delivery until 2027.
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The court ruled that 1.2 billion rubles ($15 million) of the debt was the penalty for delayed delivery. Interestingly, the trial was held behind closed doors, reportedly due to the presence of information related to russian state defense contracts.
While KAPO is regarded as a cornerstone of russia's strategic aviation, producing long-range bombers like the Tu-22M3 and Tu-160, this case demonstrates that even such "saints" are no longer shielded when it comes to commercial contracts outside the military sector.
Notably, financial data from 2018 indicates that Tupolev's total revenue that year was 37 billion rubles, with net profit just 851 million rubles. The current debt to Tatneft is several times larger than the company's last known annual profit.
This situation reveals a deeper trend: russia's defense enterprises maintain their protected status only when producing military goods. Once they operate in the civilian domain, that immunity breaks down, and contracts are enforced through courts — even against state-aligned defense giants.
Earlier in June 2025, Defense Express reported that russia had floated the idea of converting Tu-214s into makeshift bombers carrying Kh-101 and Kh-22 munitions. But whether that concept can materialize remains questionable.
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