Aircraft leasing company with 34 jets being held hostage by Putin sinks to $1.6 billion loss

Dozens of planes are stuck in Russia and an aircraft leasing company has taken a billion dollar hit.

According to the CEO of the company, 34 aircraft are being leased to the Russian state.

The company said it had complied with sanctions on Russia and had ended its lease agreements.

The law that allowed airlines to put leased aircraft from foreign countries on Russia's aircraft register was passed in March.

"Our thoughts and concerns are first and foremost with those in Ukraine and beyond who are impacted by this terrible conflict."

Russian airlines continue to fly within Russia and to countries from which it has not been possible despite the fact that SMBC Aviation Capital terminated the lease of 34 owned aircraft.

He said that the company was taking a $1.6 billion writedown because the planes were unlikely to be recovered.

Most of the money was expected to be recovered from insurance coverage.

There is a chance of a legal battle over who is responsible for those losses. Sources at Lloyd's of London told The Telegraph in May that they were prepared for a fight over losses on leased planes.

Two weeks ago, it was reported that Western planes in Russia were falling apart because of a shortage of spare parts.

The number of commercial jets in Russia fell from 928 in February to 876 in May, according to data from Ascend. There were more than 500 jets leased to Russian airlines by non-Russian lessors.