The Russian Ministry of Industry and Trade filed two lawsuits against JSC Ural Civil Aviation Plant (UZGA) in the Moscow Arbitration Court on September 3, 2026. According to court database records, the claims in the legal actions amount to 4.32 billion rubles (approximately $50 million) in one suit and 517.89 million rubles (approximately $6 million) in the second suit. Neither the ministry nor the manufacturer has issued detailed public comments regarding the specific dispute.

UZGA is the manufacturer responsible for developing the LMS-901 Baikal light multipurpose aircraft as well as the Ladoga regional turboprop aircraft. The LMS-901 Baikal program is designed to provide a modern replacement for the aging Antonov An-2 biplane fleet, which has been operating since 1947. The Russian ministry previously stated that UZGA failed to meet established contractual deadlines for stages 3.2, 4, and 6 of the aircraft's design and development work.

The Baikal project was initially planned around Western turboprop engines, but design modifications were required following 2022 sanctions to integrate the domestic OKD-Klimov VK-800 engine family. An LMS-901 Baikal completed its first flight equipped with the domestic VK-800 engine in December 2025. Subsequently, a second test aircraft fitted with the VK-800SM engine and AV-901 propeller conducted flight testing in February 2026.

Russian news outlet Kommersant reported on September 1, 2026, that the Ministry of Industry and Trade expressed readiness to supply upgraded Antonov An-2 aircraft equipped with legacy engines starting in 2027. The ministry noted that updated An-2 aircraft utilizing the new VK-800 engines could potentially follow starting in 2028 as Russia manages its utility aircraft replacement timeline.