Aeroflot shares plunge as US sanctions raise flight-ban risk

Aeroflot plunged to an almost 2-year low Thursday after the US threatened sanctions that could include flight restrictions. The State Department announced new sanctions against Russia Wednesday to punish president Vladimir Putin’s govt for allegedly using a chemical weapon against former double agent Sergei Skripal in the UK earlier this year. A second round of sanctions in 3 months could include suspending Aeroflot’s flights to the US, according to the 1991 law under which they were imposed. “If the US goes ahead and bans Aeroflot flights to the country, the Russian state-run carrier may lose as much as 5% of its revenue,” said an analyst at Uralsib Capital. “US airlines may also suffer, as the Kremlin is likely to come up with a tit-for-tat response and restrict their flights in Russian skies.” <br/>