Russia draft law raises doubt over fate of $10b of jets

Russia published a draft law on Thursday that could prevent its airlines returning leased aircraft, raising the stakes in a showdown with Western finance over $10b of jets. Sanctions imposed after Russia's invasion of Ukraine give leasing firms until March 28 to free themselves from deals with Russian airlines, sparking a game of cat-and-mouse as lenders try to seize back jets - with very little success. Under the proposed law drafted by the transport ministry, Russian airlines will pay leases in roubles throughout 2022. If a foreign lessor terminates the agreement, a special government commission is to decide whether the aircraft can be returned or rule that the aircraft must stay in Russia. "It is a bad offer tied to an even worse offer," said Eddy Pieniazek, head of analytics and advisory at UK-based aviation consultancy Ishka. The rouble has plunged around 30% since Russia sent troops into Ukraine on Feb. 24, prompting sanctions from the West. Leasing contracts are denominated in US dollars, the currency in which the mainly Ireland-based leasing industry usually borrows money and pays for aircraft. If contracts are terminated, an international treaty called the Cape Town Convention calls for airlines to return planes with minimum interference, something Western sources say is not happening though Russia insists the sanctions are improper.<br/>