Motor Sich based in Zaporizhia has signed a $110 million contract with the Indian Air Force to modernize AI-20 engines for Antonov An-32 military cargo aircraft, a company source told Interfax.

The three-year contract was signed in late December 2009. In all, 100 engines will be modernized starting from the end of this year.

Last July Ukraine and India agreed on the repairs and modernization of 105 An-32 of the Indian Air Force. The contract worth $400 million was signed between the Indian Defense Ministry and Spetstekhnoexport, a subsidiary of Ukrspetsexport. Ukraine won an Indian tender in December 2007.

That was the second largest military technical contract in the history of independent Ukraine. The largest contract of $650 million stipulated the delivery of 320 tanks to Pakistan in 2006.

India said that was the largest contract of the Indian Air Force in recent years.

According to unofficial sources, Ukrainian military exports neared $1.4 billion in 2009, or 20% more than in 2008.

About 40% of Ukrainian military exports go to Southeast Asia and less than 20% to Russia.

Ukrspetsexport forecasted 10% growth of exports in 2009.