Posted on 03/15/2022 8:43:37 AM PDT by blam
As sanctions cripple Russia’s aviation industry, President Vladimir Putin signed a law on Monday allowing foreign-owned aircraft to be re-registered as Russian for domestic use, according to state-run news agency TASS.
Russian airlines would have the ability to seize and operate aircraft leased by companies that are no longer operating in the country over sanctions imposed due to the Ukraine invasion, TASS reported.
Russian airlines have almost 780 leased jets, with 515 leased from abroad.
The new law, part of Russia’s measures to combat the sanctions, says it aims “to ensure the uninterrupted functioning of activities in the field of civil aviation.”
TASS reported that the aircraft will be certified using certification centers and test laboratories.
The bill has rattled global leasing firms days before a March 28 deadline to repossess aircraft worth $10 billion as a result of Western sanctions imposed following Russia’s invasion of Ukraine.
It comes after Bermuda and Ireland, where virtually all foreign-leased jets operating in Russia are registered, said they were suspending airworthiness certificates on the jets because they could no longer be sure they were safe.
File photo shows an aircraft of Russia’s flagship airline Aeroflot during a media presentation at Sheremetyevo International Airport outside Moscow on March 4, 2020. (Rueters/Maxim Shemetov/File Photo)
Re-registering jets in Russia would aim to keep them flying domestically by granting access to new safety approvals.
But adding Russia as a second host country could put Moscow at odds with international rules barring the registration of civil planes in more than one country at a time.
Unless Western lessors agree to Russian requests to release their jets from foreign registries—widely seen as unlikely while they struggle as it is to regain control of assets—the new policy also paves the way for a major contractual debate.
“It is illegal to register an aircraft without proof of deregistration from the previous registry as well as the agreement of the owner. This would be a default under leasing contracts,” said aviation adviser Bertrand Grabowski.
The Wall Street Journal noted that the law is likely to have limited effect, as sanctions prohibit maintenance, updates, support or the supply of spare parts for aircraft. Passengers could be put at risk as modern passenger jets require high levels of maintenance.
The Russian Federal Aviation Agency said 776 planes were registered abroad as of Feb. 24, the day Russia invaded Ukraine. Russia calls its actions in Ukraine a “special operation” to demilitarise and “denazify” its neighbor. Ukraine and the West argue that this is a false pretext to justify its invasion.
This is going to be terrible for the Russian people.
(It's not just airplanes)
Agreed. The old BRIC acronym (Brazil, Russia, India, and China) for emerging markets is a bit dated since those markets have already emerged .... but the R is going back into 3rd world status.
I read yesterday that some Russian economist suggests this takes their economy back to 1917. Not sure I understand that but it’s gonna hurt there for a long time. I hope the Russian people have enjoyed themselves. The party’s over.
True, those 10 billion of planes will wind up costing Russia 40 billion.
Feel the same way about the “West”. From my perspective it’s all broken. Putinhas no reason to abide by any contracts. I feel that my money is not at all safe in a bank. There is no institution that is worthy of trust. To most, Russian can’t be trusted. It may not be as obvious to many but non of them (U.S, Europe, China etc. Can be trusted).
How does one repo a jet in Russia? Maybe Brandon can figure that out while in Europe soon.
Putin’s like Nero, piling on fiddling stunts while Russia is burning. He’ll be dead in a year, one way or another.
"You must learn to think in Russian."
Planes, specifically, need a lot of maintenance. I don’t get this. Russia will own them, but they won’t fly for long, it seems.
Not since the west rescinded them or interfered in the performance of them.
If Foreign Companies ever trust Russia again it’s their own fault
Highly possible. He may be on his way already and he's doing a "bucket list".
Wrong sentiment based on a biased report. Europe is nationalizing whatever property owned by the Russian national worth over $200k - that is a real trust issue.
This plane story is a nothingburger. Western countries closed airspace to the Russian carriers and no plane can fly to Europe or North America anyway. They also blocked Russian banks from making transactions, meaning no lease payments can be made. Count the planes as a gift. As a side note, what lease companies are going to do with 700 of planes? Boeign is going to get out of business on a glut.
“How many decades will pass before western companies trust Russia enough to invest there.”
So many trust China, not sure why.
They’ll run to get into that country.
As soon as the hybred Mogrel is ousted.
This is kinda funny. Maybe the old owners can think of them as flying yachts and houses.
Except Brazil China and India have all refused to go along with the sanctions. So BRIC is still alive, and probably gaining in influence.
It's like Princess Justine Turdeau and his henchFascists never froze the truckers bank accounts 3 weeks fricking weeks ago...
You dont repo the jet. You just go to a US court, and get an award, and collect against a frozen asset account.
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