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Bombardier Inc.’s plans to build planes in Russia and the sale of $3.4 billion of aircraft will be delayed as Canada joins the U.S. in imposing sanctions against the country after it moved to annex Crimea, Chief Executive Officer Pierre Beaudoin said.

“Right now there’s going to be a delay because of what’s going on,” Beaudoin said Thursday in an interview at Bloomberg’s headquarters in New York.

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Bombardier signed a letter of intent in August to sell Russia’s state-owned Rostekhnologii as many as 100 Q400 turboprop aircraft valued at about $3.4 billion, based on list prices. The Montreal-based company also reached a tentative deal to establish a turboprop assembly line in Russia and said it expected to sign definitive agreements in 2014.

Like the U.S. and other allies, Canada has imposed financial sanctions and travel bans on Russian officials. Prime Minister Stephen Harper’s government has also recalled its ambassador to Russia, suspended military cooperation and pledged $220 million in financial aid to Ukraine.