Aviation Finance as an Instrument of Power

War, and its resulting sanctions, create financial damage worldwide, including in aviation.

Thursday, March 03, 2022 at 10:08 AM ET

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Lt. Gen. Vasyl Nikiforov and Maj. Gen. Don Ralph Nikiforov sit in an Ukrainian SU-27 preparing for an upcoming flight. {Courtesy: U.S. Air Force]

Key Takeaways:

Instead of military force, the U.S. and its allies are primarily employing economic pressure against Russia in response to its aggression in Ukraine.
These economic sanctions severely impact Russia's aviation sector, including airspace bans for Russian aircraft, grounded private jets, and the repossession of leased airliners, causing significant financial losses and travel disruptions.
Broader financial sanctions, such as asset freezes, the ruble's collapse, and the decimation of the stock market, are crippling the Russian economy and are projected to cause a severe recession.

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As aviation enthusiasts, it’s easy for us to picture how a strike force of F-22s, F-35s, F-15Cs, and F-16CJs could return Ukrainian air supremacy to its rightful owners. However, military force isn’t always the right tool for the U.S. to use.

Thankfully, the nations who support freedom for the people of Ukraine have other instruments of power at their disposal. In some ways, those tools will inflict more harm on Russia than any bomb or missile.