Economic Sanctions on Russia Put Business Aviation in a Tough Spot

Monday, February 28, 2022 at 05:52 PM ET

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As Canada announced sanctions against Russia on Thursday, Bombardier said it would cancel aircraft deals with Russia, as necessary. [File Photo: Shutterstock]

Key Takeaways:

The recent economic sanctions against Russia are profoundly impacting the business aviation sector, compelling companies to cease operations and forgo revenue from Russian clients.
Major aviation firms, including Bombardier and AerCap (the world's largest leasing company), are canceling aircraft deals and terminating over 150 leases with Russian airlines to comply with the new restrictions.
While creating immediate challenges and mirroring past sanction impacts, the current high global demand for business jets and potential forced sales of Russian-owned aircraft could create opportunities in the aftermarket.

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The economic sanctions imposed last week on Russia by the U.S. and its allies can put some members of the business aviation community in a tough spot.

In its statement announcing the sanctions, the White House said they include “sweeping financial sanctions and stringent export controls that will have a profound impact on Russia’s economy, financial system, and access to cutting-edge technology.”