Russia explores buying stranded jets from Western leasing firms

Russian airlines have held exploratory talks with at least one major Western leasing firm about using state funds to buy some of the more than 400 aircraft stranded in Russia after its invasion of Ukraine, according to documents and sources. The proposal, which would need EU approval and test the scope for compromise in an economic war between Moscow and the West, could lower a multibillion-dollar bill facing lessors and insurers and allow Russian airlines to secure formal ownership of planes at a potentially steep discount. A Russian aviation source said the proposal was still being discussed, but that some Russian officials were pessimistic about it getting European Union approval. An EU official familiar with discussions on the issue declined to comment. Before what Moscow calls its "special military operation" in Ukraine, Russia was a major market for aircraft lessors, who bought jets from Boeing and Airbus and leased them to Russian airlines who wanted to avoid the up-front cost and inflexibility of buying planes themselves. But after Western sanctions forced lessors to cancel these contracts, Moscow refused to allow the planes to leave, stranding almost $10b worth of aircraft in Russia and triggering claims by lessors against their own insurers. Russian airlines continue to operate many of the jets, but some have struggled to secure replacement parts.<br/>