Aeroflot (Russian Airlines) civil jets manufactured by Airbus at Moscow-Sheremetyevo International Airport.
Leonid Faerberg | Light rocket | Getty Images
Foreign aircraft lessors seeking to reclaim some $10 billion worth of planes from Russia faced another blow on Monday when President Vladimir Putin signed into law a law allowing the country’s airlines to fly domestically.
Sanctions and mutual airspace closures in response to Russia’s invasion of Ukraine last month have cut off the country’s air travel market. Boeing and Airbus have said they will no longer supply parts to their airlines. This could force air carriers to strip other planes for parts.
The country’s airline fleet has about 728 Western-built aircraft, of which 515 are leased by foreign lessors. Under European Union sanctions, aircraft lessors, some of which are based in Ireland, an EU member, have until March 28 to return aircraft.
Under new rules set on Monday, civil aircraft in Russia will allow the country’s government to issue airworthiness certificates to aircraft and register them in the country, Russian state news agency TASS reported. The law was in the works last week.
“Sometimes it’s a nightmare, but the idea of the entire aviation market going offline and ignoring international laws is novel,” said Richard Abulafia, managing director of aviation consulting firm AeroDynamic Advisory.
Aeroflot and S7, Russia’s two largest airlines, stopped international flights last week. Overseas flights may result in lessors taking possession of the aircraft.