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BOC Aviation awarded $406 million over planes stuck in Russia

Posted On: Apr. 12, 2023 8:04 AM CST

cargo plane

(Reuters) — A U.S. judge Tuesday ordered Russia’s largest cargo airline to pay aircraft lessor BOC Aviation Ltd. $406.2 million after being declared in default on leases for three Boeing 747-8 freighters following Russia’s invasion of Ukraine.

U.S. District Judge Lewis Liman in Manhattan found the defendant AirBridgeCargo Airlines LLC and its parent, Volga-Dnepr Logistics BV, liable after the invasion and resulting sanctions left BOC Aviation unable to reclaim the aircraft.

Lawyers for the defendants did not immediately respond to requests for comment. BOC declined comment.

Aircraft lessors have sued multiple insurers and lessees in mainly European courts for billions of dollars over hundreds of aircraft stuck in Russia since Russia's February 2022 invasion of Ukraine.

BOC Aviation said AirBridgeCargo went into default after being unable to maintain required reinsurance coverage.

This followed restrictions imposed by the European Union against Russian carriers on aircraft used in Russia, and Russian sanctions on foreign assets, including internationally leased aircraft.

BOC Aviation said it was able to recover one leased plane and two of its four engines, while the two other planes and two other engines remained in Russia.