On Tuesday, Boeing and Aviation Capital Services, a subsidiary of the State Corporation Russian Technologies (Rostech), announced a commitment by Rostech to purchase 35 737 Max narrow bodies. The transaction, valued at $3.5 billion at current list price, represents the first commitment for the 737 Max from Russia and the Commonwealth of Independent States.

Aviation Capital Services is an aircraft leasing company that was established in February 2011. “Aviation Capital Services signed a commitment today for 35 737 Max that will make it the first customer of the 737 Max aircraft in Eastern Europe. As a result, our partner airline-carriers will receive the most modern aircraft with improved fuel efficiency, flight characteristics and greater comfort for passengers,” stated Rostech CEO Sergey Chemezov.

Boeing and Rostech also announced an agreement to expand collaboration in titanium procurement and technology development. Rostech is a majority shareholder in the joint stock company VSMPO-AVISMA, one of Boeing’s largest titanium suppliers.

In July 2009, Boeing and VSMPO-AVISMA established Ural Boeing Manufacturing (UBM) as a 50/50 joint venture based in Verkhnyaya Salda, Russia. The partners are considering expanding UBM to support production increases of Next Generation 737s. UBM has acquired four new machines to produce 737 landing gear beams that are scheduled for installation in 2013.