Russian President Vladimir Putin passed a law on Monday that ordered the country's airlines to re-register leased planes worth roughly $10 billion to support domestic flights amid Western sanctions.
The leader's decision is his latest attempt to bypass the sanctions implemented by international leaders for Russia's unprovoked war against Ukraine. Putin signed the bill, which will attempt to "ensure the uninterrupted functioning of activities in the field of civil aviation."
Aircraft Seizure
Western sanctions that have been handed out to Russia after Putin's order to invade Ukraine gave plane leasing firms until Mar. 28 to repossess aircraft from the country. Currently, Russian airlines have roughly 780 leased jets, around 515 of them were leased from other countries.
The majority of foreign-leased jets that are operating in Russia are registered in Bermuda and Ireland. The aviation authorities connected with those regions previously said that they would be suspending certificates of airworthiness for those planes amid the sanctions.
Certificates of airworthiness issued by the civil aviation authorities in the country where planes are registered are required for the aircraft to be allowed to fly. One source said that Putin's order to re-register foreign-owned planes in Russia was one way he could get around the suspension and international sanctions, as per the New York Post.
The Federal Aviation Administration in the United States previously released a statement that said it was suspending "operations of all aircraft owned, certified, operated, registered, chartered, leased, or controlled by, for, or for the benefit of, a person who is a citizen of Russia."
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In response, Russian authorities said they have banned aircraft from at least 36 countries, including those from the European Union, from entering their airspace. Despite Putin's desperate attempt, some experts said it would have little effect amid the sanctions.
According to Fox News, they noted that the consequences of Russia's invasion of Ukraine resulted in the ban of support or the supply of spare parts necessary for planes as well as their maintenance. With how frequently modern jets require high levels of maintenance, passengers' and crew members' lives could be put in jeopardy.
Western Sanctions
Furthermore, sanctions from the United States and the European Union have effectively cut off Moscow from the world's two largest plane manufacturers, Chicago-based Boeing and Netherlands-based Airbus.
Lessors have been in a continuing battle with Russia since Moscow's invasion of Ukraine that started on Feb. 24. The EU forced aircraft leasing companies to cancel their contracts with Russian airlines by Mar. 28, prompting owners to retrieve their aircraft by the deadline.
The sanctions cutting off Russia from Airbus and Boeing means the two companies will not be able to provide support to planes in Moscow in the form of maintenance, spare parts, or updates. The ban could result in Russia turning to much riskier alternatives, such as buying uncertified supplies from China or "cannibalizing" parts from other planes on the ground, including lessor jets.
Ishka, an aviation consultancy agency, said that all of the aircraft stranded in Russia was worth roughly $10 billion. An analyst with Agency Partners, Nick Cunningham, said that the lessors may end up having to take a writeoff, Business Insider reported.
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