Konstantin Mineev, Partner and Head of Private Сlients Practice, and Alexander Geda, Counsel and Head of Finance Practice at Rybalkin, Gortsunyan, Dyakin & Partners (RGD), co-authored an column published in the Kommersant newspaper’s Aircraft Building supplement.
In their review titled “Shackled by One Chain”, RGD representatives delve into the challenges facing Russian civil aviation as it adjusts to sanctions.
One major issue in private aviation highlighted by the authors is the lack of cooperation from foreign managing organizations that own aircraft, which hinders their movement. This has resulted in more than 200 planes being virtually grounded.
Other segments of civil aviation have also encountered multiple difficulties, particularly with lessors and a direct ban on the supply of aircraft and spare parts to Russia. Another pressing concern is the issue of dual registration of Russian airplanes. In March 2022, the Bermuda Civil Aviation Authority suspended airworthiness certificates for aircraft used by Russian carriers, leaving nearly 500 Russian planes stranded in Bermuda.
Konstantin and Alexander note that the aviation industry is not adapting to the new reality as swiftly as other large Russian businesses affected by sanctions. This is partly due to the sector’s specifics, including its focus on immediate operational issues, with aircraft maintenance becoming a top priority.
However, the authors predict that Russian aviation will eventually adapt to new challenges in a relatively short amount of time. They suggest that progress in this sector will depend on government support, broader use of friendly jurisdictions, more active focus on the domestic market, and expansion of domestic aircraft production.
To read the full version of this article in Russian, please visit the Kommersant website.
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