Zaporizhia-based open joint-stock company Motor Sich is leaving a program to set up a facility to assemble MS-500V engines for Russian Ansat-like light multipurpose helicopters in Tatarstan on the basis of Kazan Helicopter Plant (Tatarstan).

The company's leadership told Interfax-Ukraine last week that Russian Helicopters, which incorporates the Kazan Helicopter Plant, had decided not to equip the helicopter with Ukrainian-made engines.

"The project with Kazan colleagues was at the final stage, and we'd discussed all aspects of cooperation – both technical and financial. The project was to be launched in 2012 after completion of the certification of MS-500V engines," the source in the company said.

A representative of the top managers in Motor Sich said that the funds it invested in the designing and certification of the MS-500V engines would be returned to it.

"Today we're drawing up options for cooperation with customers on the Southeast Asia and we're planning to equip Ukrainian aircraft with the engines," he said.

In March 2011, Motor Sich signed a protocol of intent with OJSC Kazan Engine Building Center (Tatarstan, Russia) on the signing of a licensed agreement to produce Ukrainian engines in Kazan. According to preliminary plans, 85% of the engine would have been assembled in Zaporizhia and 15% in Kazan.