World says Nyet to Russian jets
As people around the world watch the horror of the Russian invasion in Ukraine, governments have been responding. And it has taken less than a week for Russia’s commercial aviation market to be shut down.
Russian owned or controlled aircraft cannot fly in US, Canadian, EU or UK airspace. Financiers are required to terminate transactions by March 28th. EU and UK insurers are no longer able to cover Russian risk. Although Russian aircraft can fly domestically, with manufacturers no longer supporting aircraft in the country, this will not last long.
While many in the industry support anything to stop the invasion, these sudden actions are making business especially hard for operators and charter brokers. We know of one US citizen prop aircraft owner who can no longer fly it because she was born in Russia.
We had a fantastic Town Hall covering these changes this week. You can view it below.
On top of this, Russian and Belarusian owners and aircraft are also being targetted with sanctions. “We are joining with our European allies to find and seize your yachts your luxury apartments your private jets. We are coming for your ill-begotten gains,” said president Joe Biden, in his State of the Union Address on Tuesday.
Countries around the world have sanctioned hundreds of people (the EU alone has added almost 400 – with Switzerland also following). Yesterday, the US added three more billionaires. One of these is Alisher Burhanovich Usmanov. The EU also sanctioned him this week.
Usmanov is a Russian billionaire who made his money in the metals and mining, telecommunications, and information technology sectors. As well as adding him, several of his companies (and any others where he owns more than a 50% stake), they also targeted his superyacht, Dilbar, and his VVIP Airbus A340-300. The US Office of Foreign Asset Control (OFAC) says that Usmanov is known to be close to Putin.
OFAC has named Usmanov’s superyacht and aircraft as blocked property in which Usmanov has an interest. Which means that things like maintenance, hiring crew or pilots, or paying of landing fees, in dollars (or by US persons) are forbidden.