AgustaWestland seals $697 mln Russia deal to 2012

MILAN, May 17 (Reuters) - Helicopter maker AgustaWestland, owned by Italy's Finmeccanica (SIFI.MI: Quote, Profile, Research), has signed a contract for 450 million euros ($696.5 million) of helicopters up to 2012 Russian Oboronprom investment group, it said.

In a statement on its website, AgustaWestland said the deal, announced in Moscow on Friday, followed a letter of intent signed with Oboronprom in summer 2007. The deal, which is also with Loyd's Investments, includes a distribution agreement.

This year, the accord calls for 10 helicopters worth 65 million euros, AgustaWestland said, as well as marketing of the company's helicopters in Russia and CIS countries.

Oboronprom and AgustaWestland expect to eventually have joint production agreement for helicopters in Russia for both domestic and international markets, the Italian company said.

"We see the Russian and CIS markets as very important with the potential to generate significant future business opportunities," said Giuseppe Orsi, chief executive officer of AgustaWestland, in the statement.

Andrey Reus, general director of Oboronprom, said the deal meant "involvement of the Russian helicopter industry into the international aviation cooperation system."

Oboronprom Corporation is an industrial investment group, founded in 2002.

Loyd's Investments Corp. markets and sells aviation products in eastern Europe and the former Soviet Union area.

(Reporting by Jo Winterbottom; Editing by Ron Askew)