This week has seen Irish aircraft lessor AerCap settle with Aeroflot over the theft of 17 aircraft that occurred during the Ukraine War when sanctions were applied.
It is understood that the settlement is valued at $645 million, as per the filing released by the company on September 5.
Without further ado, let’s get into it…
Ukraine War: AerCap Settles With Aeroflot Over Stolen Aircraft…
Under a SEC 6-K filing, AerCap said the following on the deal made with Aeroflot over the stolen aircraft during the Ukraine War.
“On September 5, 2023, we received cash insurance settlement proceeds in the total amount of approximately US$645 million in full settlement of our insurance claims under the Aeroflot group’s insurance policies in respect of the 17 aircraft and five spare engines on lease to Russian flag carrier Public Joint Stock Company “Aeroflot – Russian Airlines” (“Aeroflot”) and Joint Stock Company Rossiya Airlines, a member of Aeroflot Group (“Rossiya”), at the time of Russia’s invasion of Ukraine in February 2022. Effective upon receipt of these insurance settlement proceeds from Limited Liability Company “Insurance Company NSK” (“NSK”), a Russian insurance company, we have released our claims against NSK, Aeroflot, Rossiya and their international reinsurers with respect to these aircraft and engines.”
“These insurance settlements and receipt of the settlement proceeds were approved by the U.S. Department of Commerce and the U.S. Department of the Treasury and are consistent with other applicable sanctions regimes.”
“The amount of our separate US$3.4 billion claim against the “All Risks” insurers under our contingent and possessed insurance policy that relates to these 17 aircraft and five spare engines is approximately US$908 million.”
“As a result of the receipt of these insurance settlement proceeds, this claim will be reduced to approximately US$2.75 billion.”
“Insurance settlement discussions are ongoing with respect to our claims under the insurance policies of several other Russian airlines.”
“However, it is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds and, if so, in what amount.”
“In particular, it remains uncertain whether the necessary approvals and funding to complete any such further insurance settlements can be obtained.”
At this stage, it is unclear how much further their insurance claims will take them, especially in the context of a complicated situation like sanctions caused by the Ukraine War.
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