Dublin-domiciled aviation company, SMBC Aviation Capital, stated that it has received cash insurance settlement proceeds totalling approximately $710 million in respect of its aircraft previously leased to Aeroflot, a Russian state-owned airline company.
The settlement amount represents the company’s insurance claims under Aeroflot’s insurance and reinsurance policies relating to sixteen aircraft and associated engines. An additional insurance settlement has been concluded for one aircraft and associated engines also managed by SMBC Aviation Capital.
According to SMBC, the settlement and receipt of the proceeds from Limited Liability Company “Insurance Company NSK”, a Russian insurer, 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.
Prior to the invasion of Ukraine last year, Russia was a major market for aircraft lessors buying jets from Boeing and Airbus and leasing them to airlines in the country.
Moscow refused to release the jets after lessors cancelled lease agreements to abide by sanctions from the West, leaving these planes stranded.
SMBC Aviation Capital said it will continue to actively pursue its litigation in the Irish courts under its own insurance policies. It will also seek to mitigate its losses in respect of its aircraft that were previously leased to other Russian airlines.
