Putin’s law keeps leased foreign jets in Russia

The fate of hundreds of planes leased by Russian airlines from foreign companies grew murkier this week after Russian President Vladimir Putin signed a law letting the airlines register those planes and continue flying them.

Russian state media said the law will let Russian airlines keep their fleets and operate foreign planes on routes within Russia.

Many of the planes used by Russian airlines are leased from foreign companies, including several in Ireland, a member of the European Union. Last month, the EU banned the sale or leasing of planes to Russia as part of sanctions on Russia for invading Ukraine. It gave leasing companies until March 28 to end current contracts in Russia.

Last week, Russia’s air-transport agency advised airlines with foreign-registered planes not to take them out of the country because of the risk they could be repossessed.

Separately, sanctions prevent Western companies from providing parts and maintenance to Russian airlines, and analysts say it is unclear whether the planes are insured anymore.

Various estimates place the number of foreign-owned planes operated by Russian airlines at around 500 or more, and the vast majority of them were inside Russia when the war started Feb. 24.

Aviation consulting firm Ishka estimates that the foreign-owned planes are worth $12 billion.

“We are in uncharted territory. We don’t know if they will see these aircraft again,” said Helane Becker, an aviation analyst for financial-services firm Cowen. “Our guess is that (Russian carriers) use up whatever parts they have and then start cannibalizing (parts) to keep aircraft flying.”