Russia's VEB-Leasing has signed an agreement with UTair to finance the 20 Airbus A321s ordered by the carrier group.
VEB-Leasing made the first advance payment to Airbus last month. The first two aircraft are scheduled for delivery in the second quarter of 2013. Deliveries are expected to be completed by November 2015.
"This type of financing agreement is a first in the Russian aviation industry," says UTair Aviation's deputy general director and chief financial officer Igor Petrov.
VEB-Leasing signed a memorandum of understanding with Airbus on co-operation in aviation leasing and finance at the MAKS air show in 2011.
It involves VEB-Leasing's providing leasing and financing support to airlines in Russia and the CIS in areas such as pre-delivery payment financing as well as delivery financing of new and used aircraft, and financing with support from European export credit agencies.