By Alex Glenn •
Published: 10 Mar 2022 • 15:43
Marat Gizatulin, Flickr, (CC BY-SA 2.0)
Russia absconds with $10bn worth of rented aircraft. The move is said to be in response to the latest round of EU sanctions.
Airlines in Russia seem to have absconded with billions of pounds worth of rented aeroplanes. This is to prevent them from being repossessed after EU sanctions have been put in place. The latest sanctions mean that aircraft and plane parts cannot be sold to Russian companies. EU airspace has also been restricted for Russian planes.
Russia has kept hold of more than 500 planes to prevent them from being repossessed, according to OCCRP and Bloomberg.
Russia has seen its wings clipped as international markets and supply chains are closed off. The Russian firms are said to be holding onto the planes to mitigate against any losses. Russia runs the risk of any planes being detained on arrival when flying in other countries’ airspace.
Rob Stallard, an analyst at Vertical Research Partners revealed: “The Russian aviation sector is now on footing that is similar to North Korea and Iran — and similar to where it was under Soviet rule.”
According to the EU sanctions, companies have until late March to repossess the planes. This will be difficult though with the planes being kept in Russia.
Steve Giordano, managing director of Nomadic Aviation Group commented: “The number one fear right now is that these aeroplanes are gone forever.”
George Dimitroff, head of valuations for consultant Ascend by Cirium explained: “The more we talk with insurers and other people at this conference, the clearer it’s becoming that these aircraft aren’t coming back.”
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Originally from the UK, Alex is based in Almeria and is a web reporter for The Euro Weekly News covering international and Spanish national news.
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