Aircraft leasing company announces it will cancel $800 million of planes stranded in Russia amid sanctions

A US aircraft rental company said it would write off the value of dozens of its planes stranded in Russia, according to Reuters.

According to the outlet, Air Lease Corporation had 27 jets stranded in Russia after Western-imposed sanctions came into effect, following Russia’s invasion of Ukraine.

The write-off is expected to cost the company $802 million.

“The company is unlikely to repossess the aircraft that have not been returned and remain in Russia,” Air Lease said in a statement, according to the outlet.

Air Lease Corporation did not immediately respond to Insider’s request for comment made outside of normal working hours.

The aviation industry has been hit hard since the start of the war between Russia and Ukraine. Airline leasing companies, in particular, have borne the brunt of these sanctions, forcing them to break their contracts with Russian airlines.

On February 27, the European Union banned “any aircraft owned, chartered or otherwise controlled by a Russian legal or natural person”, as part of its sanctions against Russia.

Last month, Russia also signed a new law allowing the seizure of hundreds of Western-built planes operated by Russian airlines. The jets – originally owned by international aircraft lessors – will be added to the country’s aircraft registry for deployment on domestic routes, according to Reuters.

Air Lease is not the only company facing difficulties. The world’s largest aircraft rental company, AerCap, has more than 100 jets stranded in Russia and subsequently submitted an insurance claim of about $3.5 billion for lost assets.

According to Reuters, Air Lease will release 21 company-owned jets and six planes from its management fleet. He told the outlet he would pursue insurance claims to recover losses from his jets stranded in Russia.

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