SMBC Aviation Capital Announces Settlement with Aeroflot

SMBC Aviation Capital Announces Settlement with Aeroflot
Papas Dos from Moscow, Russia, CC BY 2.0 , via Wikimedia Commons

SMBC Aviation Capital has this week announced that it has received a settlement with Aeroflot for aircraft stuck in Russia over the course of the Ukraine War and the sanctions that have come with it.

It is understood that this deal was facilitated through Insurance Company NSK, and that this settlement has been approved by authorities in the United States.

Without further ado, let’s get into it…

SMBC Aviation Capital Announces Settlement with Aeroflot…

SMBC Aviation Capital Announces Settlement with Aeroflot
Anna Zvereva from Tallinn, Estonia, CC BY-SA 2.0, via Wikimedia Commons

It is understood that the deal is worth $710m and is pertinent to 16 aircraft and it’s associated engines, with an additional settlement completed for one aircraft and associated engines too.

On this deal, SMBC Aviation Capital had this to say on the settlement with Aeroflot:

“The insurance settlement and receipt of the settlement proceeds from Limited Liability Company “Insurance Company NSK”, a Russian insurance company, were carried out in full compliance with all applicable laws, sanctions and regulations and have been approved by the U.S. Department of Commerce and the U.S. Department of the Treasury.”

“SMBC Aviation Capital will continue to actively pursue its litigation in the Irish courts under its own insurance policies.”

“SMBC Aviation Capital will also continue its efforts to seek to mitigate its losses in respect of its aircraft that were previously leased to other Russian airlines.”

Aeroflot has been actively coming to deals with lessors, of which the last notable deal came with AerCap for 17 aircraft at a settlement cost of $645m.

Moreover, it was also announced that with the help of the Russian government as well as from profits in low-cost arm Pobeda, the Russian carrier will continue these settlements going into the future.

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By James Field - Editor in Chief 2 Min Read
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