Russia’s Import Substitution Program For U.S. Aviation Displays Fails

Russia’s Ministry of Industry and Trade has fined Russian electronics developer JSC “Aviation and Marine Electronics” (NPP AME) RUB 257.1 million ($3.2 million) after the company failed to implement an import substitution program for displays used in military aviation.

The fine amount equals the full value of the state contract for research and development work under the code name “Display-I7,” CNews reported.

The total amount of accrued penalties exceeded RUB 394 million, but under the terms of the agreement, the penalty was limited to the value of the contract itself.

The company was supposed to develop and launch serial production of gas-discharge video modules intended to replace U.S.-made electroluminescent displays produced by PLANAR. At the time the contract was signed, Russia had no domestic equivalents of such systems.

The contractor was required to complete the final, third stage of development by November 20, 2019. However, as of May 2026, the work had still not been completed, and the delay in fulfilling obligations amounted to 2,379 days — nearly six and a half years.

The contract with the company was signed in October 2017. The company completed the first two stages of the work on time but failed to complete the key final stage involving development and preparation for serial production.

Russia’s Ministry of Industry and Trade has demanded that NPP AME transfer the funds within 30 days. In case of refusal, the Russian agency has threatened to recover the money through an Arbitration Court.