Russia has paved the way for domestic airlines to appropriate hundreds of foreign-owned planes trapped in the country, after foreign registries suspended certification of planes leased by Russian airlines.
Russian airlines currently operate about 515 foreign-owned planes, with a total of around $10 billion. Airlines often lease planes from foreign owners to expand capacity quickly without needing to raise the capital to buy planes themselves. But due to sanctions imposed by the EU, foreign jet lessors are being forced to cancel contracts with Russian airlines.
After nullifying contracts, however, jet lessors have few means to get their planes back from Russia—and even less chance of doing so following Russia President Vladimir Putin’s latest maneuver.
On Monday, the Kremlin passed a law that allows domestic airlines to register foreign-owned planes in Russia, creating a veil of legality for domestic operators to continue flying foreign-owned aircraft after jet lessors cancel their contracts. The government will also grant airworthiness certificates to foreign-owned planes, which certify that a plane has been fully maintained and is fit to fly.
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Putin passes law to let Russian airlines take over foreign-owned planes | Fortune
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