After the West imposed a number of sanctions against Russia over the Ukraine invasion, the Kremlin is in plans to seize hundreds of commercial jets owned by US and European leasing companies.
A law was signed by Russian President Vladimir Putin on Monday which allows Russian airlines to register planes leased from foreign companies in Russia.
With the implementation of this law, Russian airlines will be able to operate the foreign leased planes on their domestic route, a concerning development for the Western foreign manufacturer as their massive number of planes are in Russia currently.
The law will make challenges for foreign companies to reclaim their aircraft and will help Russian airlines to keep their foreign leased aircraft and operate the planes on domestic routes while making it harder for foreign companies to reclaim their jets without Russian government approval.
Challenges for Western Aircraft Manufacturer
US and European sanctions imposed on Russia require leasing companies to repossess all planes they leased to Russian airlines by the end of the month, reported CNN.
Currently, Airbus (EADSF) and Boeing have already cut off
Russian airlines' access to spare parts. Nearly 305 Airbus aircraft and 332 Boeing aircraft are currently being operated by Russian airlines.
It was unclear how the leasing companies could have taken possession of these planes while they remain on Russian soil. Additional sanctions prohibiting Russian aircraft from flying to most other countries has restricted its airline industry essentially to domestic flights.
Aviation analytics firm Cirium, 85% of foreign-made planes in Russia are currently owned by leasing companies that are believed to be valued at $12.4 billion.
The Russian aviation industry is currently in tatters as sanctions have prohibited Russian planes from flying to other countries. However,
Russia does not require all the planes it is seizing especially at the time of challenges on international travel. The seizure is aimed to respond to western countries that are against their sanctions.