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

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© 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)

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