European aircraft leasing companies are facing a huge logistical challenge to recover hundreds of planes worth an estimated $5bn from Russia by the end of March under sanctions imposed after the country’s invasion of Ukraine.
Russian aviation is a key target of the sanctions imposed by the European Commission. The measures prohibit the sale, transfer, supply or export of aircraft or any components. Leased aircraft are included as they fall under “supply”, three people briefed on the situation confirmed. As such, no new contracts can be entered into and existing ones have to be terminated within 30 days.
“The 30 days is going to be really difficult for lessors to figure out how to terminate [contracts],” said one person in the industry who asked not to be named. “The bigger issue is how do you repossess that many aircraft in that time?”