Russian Lessor Insurance Dispute 2022
Status in April 2026
Following February 2022 sanctions, foreign aircraft lessors were required to terminate leases and request return of approximately 400 aircraft on lease to Russian operators. Most were not returned. Russian legislation authorised continued operation under domestic registration. The resulting insurance claims — between lessors, airline war risk underwriters, and hull all risks insurers — constitute the largest aviation insurance dispute on record.
What Happened
EU Regulation 2022/328 (5 March 2022) and parallel UK / US measures required lessors in sanctioning jurisdictions to terminate leases with Russian airlines by 28 March 2022. The intention was to remove the leased aircraft from Russian operation.
Russian Federation Government Decree 311 (13 March 2022) prohibited export of the aircraft and, combined with airspace closures, made repossession impossible. Subsequent Russian legislation authorised re-registration of foreign-owned aircraft on the Russian register, enabling continued operation by Russian carriers.
Lessors filed claims on their own contingent and possessed policies. Airlines and their financiers filed claims on fleet hull war and hull all risks policies. Underwriters disputed coverage, causation, and allocation.
Key Legal Threads
- ›AerCap v. AIG et al. (London) — largest single proceeding. First-instance judgment in 2024 partially favoured AerCap; appellate proceedings continue into 2026.
- ›SMBC Aviation Capital, Avolon, BOC Aviation — parallel actions in London and Dublin addressing distinct coverage questions.
- ›Settlement tracks — several lessors and Russian carriers negotiated purchase-buyout settlements, some mediated by Russian authorities, at below-market values.
- ›Central causation question — whether loss is triggered by war exclusion (→ war policy) or by confiscation / detention clauses (→ hull all risks or specific endorsements).
Why It Matters Beyond the Parties
Market effects have compounded for four years: war risk premiums rose materially across the industry; reinsurance capacity tightened; aircraft financing structures tightened lessor recourse; lessor concentration by jurisdiction shifted. The dispute has been referenced in every subsequent conflict-zone policy drafting exercise as a practical test case.
Resolution — when it arrives — will influence how similar exposures are priced and covered for the next decade of aviation finance.
Aggregated from publicly available case documents and industry reporting. Not legal commentary on specific proceedings. See Terms of Service.