S7 Airlines and Ural Airlines, two Russian airlines, declared that their insurance settlement with foreign lessors was finalized.
A total of 190 billion roubles ($2.06 billion) from Russia’s National Welfare Fund have been set aside for the purchase of the planes. They will now be transferred to the airlines by NLK-Finance, the state insurance company of Russia.
While national flag carrier Aeroflot announced deals had been finalized for 28 of its aircraft, with another 19 going to Ural Airlines, airline S7 said that 45 of its previously foreign-owned planes were sold out.
Following the February 2022 Russian invasion of Ukraine, which led to Western sanctions against Russian airlines, Russia re-registered foreign aircraft in its fleet.
By re-registering these foreign aircraft under Russian ownership, they are protected from prospective sanctions and can now be used for international travel without fear of being seized. This action is consistent with those other Russian airlines (Aeroflot, Ural Airlines) have taken in response to government grants from the National Wealth Fund intended for the acquisition of foreign aircraft.