Agreement signed in Moscow 29 September 1994 between Eurocopter, Mil Moscow Helicopter Plant, Kazan Helicopter Plant (KVZ) and Klimov Corporation to form equal share joint venture company, operating under Russian law and covering development and production of 30-passenger Mi-38 helicopter. Eurocopter plans to use Mi-38 to extend its range of products upwards; expects to invest about US$100 million in programme, from total cost (1999) of US$500 million. Each of above-named had one-third share, but risk-sharing partnership expanded to include Sextant Avionique and Pratt & Whitney Canada.
Mil, Kazan and Eurocopter took a board decision in December 1998 to proceed with Mi-38 on new timetable and signed contract in Moscow on 18 August 1999 for completion of demonstrator, as preliminary to manufacture of representative prototype. Final months of 1999 used to establish operational organisation of Euromil, before obtaining design and certification approvals, plus exclusive programme rights from Russian authorities. Russian airworthiness authorities inspected Mil facilities in November 2000 as prelude to assembly of prototype, although first aircraft built at Kazan in 2003.