The 400 Airplanes That Russia Seized Have Become an Epic Insurance Struggle

Two decades ago, as a Russia sought to regain its place on the global stage, flagship airline Aeroflot PJSC and various startup carriers accelerated their shift from Soviet-era Ilyushins and Tupolevs to modern jetliners. It enriched a less exalted corner of the aviation business: aircraft leasing firms. Lessors jumped in and it was found that half of the planes in the Russian fleet are owned by companies outside the country. The market has been thrown into turmoil because of the war in Ukraine, and insurers are not obligated to pay many claims because they dropped coverage in Russia.

Lessors were ordered to return their planes by the European Union after the invasion. In places such as Hong Kong, Istanbul, and Mexico City, about 30 jets were seized. Almost 400 foreign-owned aircraft were left stranded after the Kremlin imposed a ban on most international flights for Russian airlines. Russia encouraged its carriers to register their planes at home, a move that is banned by international aviation treaties.