The Kazan Helicopter Plant (KVZ) has become part of the “Russian Helicopters” holding as the last of the helicopter manufacturers. Formally, this happened in 2004, but the government of Tatarstan, which owned about 30% of the shares, agreed to exchange its stake for 15.07% of Oboronprom only in November 2005. In December 2006, Alexander Lavrentyev, who had headed the plant for 17 years, also sold his stake (more than 30% of shares).
Andrey Reus, who led Oboronprom from 2007 to 2012, told Kazan First that everyone understood this situation and benefited from it. “There was no administrative pressure on the owners. It wasn’t just about buying up assets—a global player was being created,” he said.
According to another version, the then-beneficiaries of KVZ were also influenced by the fact that over 90% of production was exported. Export deliveries were mainly carried out through Rosoboronexport (a shareholder of Oboronprom), which complicated processes somewhat. In any case, by 2013, Russian Helicopters had consolidated 99.6% of KVZ.
In 2007, KVZ delivered 35 helicopters. Production steadily increased annually until 2014, reaching 107 helicopters. However, the following year saw a sharp decline due to sanctions: 77 helicopters in 2015, 62 in 2017, and just 27 in 2019. Yet, since 2022, the plant has delivered over 100 helicopters per year, some under defense contracts.
Sanctions became a major challenge for KVZ. As early as 2014, they had to find replacements for paints and coatings from the Dutch company Akzo Nobel, but import substitution was achieved fairly quickly. The biggest issue was the lack of a Russian-made engine. Until March 2022, KVZ used Canadian PW207K engines from Pratt & Whitney. The Russian engine VK-650V by ODK-Klimov began development in 2019, but testing wasn’t complete when Canadian supplies stopped.
In 2023, design bureau engineers completed testing of the VK-650V, and the first units were installed on Ansat helicopters for testing. In February 2025, the United Engine Corporation (UEC) under Rostec announced that the engine had received a type certificate for light helicopters. The engine, designed for greater takeoff power, is also planned for installation on the Mi-34 and Ka-226 (replacing the French Arrius 2G1) at the Ulan-Ude aviation plant.
Vladimir Artyakov, Deputy General Director of Rostec, says, “The aircraft engine is the most complex part of an aircraft. The VK-650V was developed and certified in record time—just 5 years. With sanctions and the exit of foreign suppliers, demand for such powerplants is extremely high. Our engine builders successfully met this challenge. Along with new engines for heavy and medium helicopters, we now have our own engine for light helicopters.”
By 2020, the plant planned to complete modernization of its assembly, machining, stamping, electroplating, heat treatment, and welding production lines. Although import restrictions altered the modernization plans, the plant has since been nearly completely re-equipped.
The total investment amount is not disclosed in public sources, but between 2013 and 2017, 11 billion rubles were allocated. According to aviation industry sources, expenses (including the creation of a vocational training center) may have reached 25 billion rubles. The final assembly shop and training center, launched in 2021, are scheduled for completion by spring 2024. In April 2025, it was announced that modernization would continue, including the creation of composite material manufacturing, with an estimated cost of 15 billion rubles.
Dmitry Lelikov, Deputy General Director of Rostec, said, “The new final assembly shop was essential. It enables flow-line production, which ensures the best economic performance. Modern production will also significantly increase labor productivity and improve working conditions.”
Since 2021, KVZ has been implementing the “Smart Workshop” project. A digital twin allows interactive identification of problem areas, design changes, and easier maintenance and repair.
Alexander Alekseev, director of the Ansat program, says, “The designer creates the drawing, and the technologist automatically receives all the updates across the production chain. Previously, implementing design changes on paper was difficult and time-consuming.” He noted that digitalization at the plant began as early as 2016.
In October 2023, Nikolai Yakovlev became director of KVZ (in six years, five directors had changed). While official sources do not explicitly link his appointment to military production, his long experience in the defense sector (including Rostvertol and AAK Progress, which produces the Ka-52) and recent work with military programs suggest a logical alignment with the increased defense importance of KVZ in the holding’s strategy.
By the end of 2024, KVZ had increased revenue to 58.99 billion rubles, up 14.4% from 51.58 billion in 2023. However, net profit declined to 1.24 billion rubles (from 1.35 billion). Commercial expenses rose from 6.97 to 8.58 billion rubles, and administrative costs from 1.49 to 1.74 billion. Most of the income came from helicopter sales—54.35 billion rubles, compared to 47.48 billion a year earlier. The domestic market contributed 36.19 billion rubles, and exports brought in 18.63 billion. Spare parts sales totaled 3.31 billion, slightly down from 3.36 billion in 2023.
By the end of 2025, KVZ plans to release several Ansat helicopters, 15 Mi-34s, and 9 Mi-38s (likely under a 14.8 billion ruble contract with Russia’s Ministry of Emergency Situations signed in 2021, which had been paused due to the Il-112 crash, which used the same TV7-117V engine variant).
However, unresolved problems remain. By 2029, 49 Ansat helicopters will reach the 3,000-hour flight limit. Further use will only be possible after engine servicing, which cannot be done in Russia or in friendly countries.
Helicopter Industry Association (AVI) says, “The Russian industry does not have access to the original technical documentation from Pratt & Whitney Canada, which means certified engine servicing cannot be organized.”
A possible solution is extending engine life. At the HeliRussia forum, Danil Andreev, acting Director of After-Sales Services at Russian Helicopters, reported that extending PW207K engine life to 4,000 hours is under consideration for state aviation—potentially prolonging service of already-produced helicopters.
Current Prospects and Outlook
Despite challenges, KVZ still has strong export prospects. Its helicopters attract interest from both near and far abroad. In July 2025, Sultan bin Khalifa al-Nahyan, Advisor to the President of the UAE and Honorary Chairman of the Abu Dhabi Chamber of Commerce and Industry, visited the plant. The delegation toured the unit assembly, painting, and final assembly shops and saw medical and police variants of the Ansat, along with Mi-38 and Mi-8MTV-1 helicopters with high-comfort cabins. A delegation from Mali also visited.
Domestically, efforts continue. Rustam Minnikhanov, Head of Tatarstan, participated in the transfer of the first 10 Mi-8MTV-1 helicopters to operators.
One serious issue remains—personnel shortage. Open sources state the plant currently needs to fill about 140 positions, whereas in 2013, it was 97% staffed. Addressing this, the first student cohort graduated in July 2025 under a program allowing students to receive vocational training without interrupting schooling.
Adel Shagimardanov, Deputy General Director of the Kazan Helicopter Plant under Russian Helicopters and Rostec, says, “This career guidance project helps teenagers start careers at one of the country’s largest aircraft manufacturers. It allows them to obtain an in-demand trade while still in school and fosters sustainable interest in industrial professions.”
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