The European Union has eased sanctions against Russian airlines, but it will not help them
On April 8, the Council of the European Union partially eased sanctions against Russian civil aviation, but this will do little to improve the situation of Russian airlines. The decision has already been published in the Official Journal of the European Union.
In the updated version of the sanctions imposed by the European Union due to Russia’s invasion of Ukraine, European companies were allowed to provide aircraft for financial leasing in Russia, if the agreement is concluded before February 26, 2022.
At the same time, in each case, European companies need to obtain permission from the authorities of their country to continue working under this agreement. Upon completion of all payments, the aircraft will be transferred to the ownership of Russian air carriers.
Why have the sanctions been eased?
Financial leasing is, in essence, the sale of an aircraft for payment. Upon completion of all payments, the equipment becomes the property of the airline. In Russia, this type of leasing is not common. Most airliners were taken under operating leases – ie. temporary lease for several years, after which the aircraft was returned to the owner.
Terms of financial leasing and operating leasing are different. The Russian side could require European companies to pay the difference in paid bills. Apparently, this led to the easing of sanctions, because they would then affect European companies more than Russian ones.
Why won’t it help Russia?
The European Union and the United States have lifted a ban on the supply of spare parts and technical documentation to Russia for the maintenance of airliners. As a result, Russian airlines and service centers will not be able to legally receive original spare parts and official support from Airbus and Boeing aircraft manufacturers.
Initially, foreign aircraft in Russia can be repaired due to the transformation of part of the fleet into spare parts donors. For further flights, the country will have to establish illegal supply channels for spare parts or use counterfeit parts. This situation could reduce the safety of civil aviation in Russia.
