Stock Groups

Russia to give $1.2 billion to help domestic airlines and flights -Breaking


© Reuters. Russian airlines including Aeroflot, Rossiya and Aeroflot have passenger planes parked at Sheremetyevo International Airport, Moscow, Russia, March 1, 2022. REUTERS/Marina Lystseva

(Reuters) – Russian President Vladimir Putin announced Thursday that Russia will provide 100 billion roubles to domestic airlines ($1.25 billion), in aid of helping them cope with international sanctions.

In remarks televised at the close of a meeting of representatives of airline and aircraft manufacturer, he stated that in 2022 domestic flights will receive subsidies from the government.

Due to severe US, European and Russian restrictions on each other’s airspaces, 11th largest global aviation market are under serious pressure. Russian airlines are also unable to buy spare parts and maintenance services from the United States or Europe.

Due to sanctions imposed by Russia in reaction to its decision to send its military forces into Ukraine’s territory, Western aircraft leasing companies were also forced to end leases under which Russian airlines leased more than 500 aircraft.

Putin claimed that he directed the government to find ways to lessen the financial burden on airlines from leasing.

Russia passed legislation allowing leased planes to be added to its aircraft registry. Russian airlines were hesitant to apply the law for fear of jeopardizing relations with foreign partners.

Putin stated that leasing payments should be reviewed because a large portion of them are supposed to go to unfriendly companies and these countries have violated their contractual obligations.

“In this context, I request the government to create a series of steps to address problems with leasing payments. Naturally, this should take into account the country where the leasing company is located.”

($1 = 80.1250 roubles)

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, futures, indexes or Forex. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. Because prices might not reflect the market, they may be incorrect. This means that prices cannot be considered indicative and are inappropriate for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. Trading the financial markets is an extremely risky investment. Please make sure you are fully aware of all the costs and risks involved.