Russia is in the process of extending the special regulatory framework that permits domestic airlines to continue operating foreign-leased aircraft until the end of 2028. The move underscores the ongoing challenges Moscow faces in resolving aviation leasing disputes in the wake of Western sanctions, as well as the pressing necessity to preserve its current aircraft fleet while awaiting the arrival of new domestically manufactured passenger aircraft.
The Ministry of Transport has drafted a draft government resolution that would extend the special operating regime for foreign-manufactured aircraft and engines that are leased by Russian airlines, as reported by the Russian business newspaper Vedomosti. The proposed extension would provide carriers with an additional two years to operate aircraft that were leased prior to the implementation of Western sanctions in February 2022.
Russia Extends Special Aviation Framework
Following the escalation of Western sanctions against Russia in March 2022, the special operating regime was first implemented for a two-year period. The government extended the arrangement until the end of 2026 in 2024. The most recent proposal would extend the deadline, enabling Russian airlines to continue operating the affected aircraft until December 2028.
The framework enables Russian airlines to retain aircraft that were leased from foreign companies before February 24, 2022, without the need to return them to their original owners. In addition, it establishes a domestic regulatory framework for their insurance and maintenance, which enables these procedures to be executed in accordance with Russian standards and the Federal Aviation Regulations of the country.
The proposed extension is intended to protect the interests of Russian legal entities against actions by countries considered unfriendly by Moscow. It also aims to guarantee that airlines can continue to fulfill their leasing agreements and maintain operational continuity in the face of unresolved international disputes.
The decision is of particular significance to Russian aviation, as foreign-manufactured aircraft continue to be indispensable for domestic passenger transportation. Boeing and Airbus aircraft continue to constitute a major proportion of the nation’s commercial aviation fleet.
Disputes Over Nearly 200 Aircraft Remain Unresolved
Russian airlines had more than 500 aircraft under lease from foreign companies before the implementation of the sanctions in February 2022. Many of these aircraft were registered outside of Russia and belonged to large international leasing companies.
The situation became more complex as a result of the sanctions. Some aircraft were confiscated or held in foreign countries, while others were returned to their leasing companies. A number of aircraft were subsequently purchased by Russian airlines, allowing their ownership and operational status to be regularised.
However, the financial and legal disputes have not been entirely resolved. As of the end of 2026, claims concerning approximately 200 aircraft are still unresolved, according to the reported figures.
The issue is not limited to the physical ownership of aircraft. Complex insurance contracts, financial guaranties, and contractual obligations are all part of international leasing arrangements. These arrangements were disrupted by Western sanctions, which resulted in the absence of the conventional international insurance and leasing structures that had previously regulated the use of aircraft in Russia.
The proposed extension would allow Russian airlines to continue operating these aircraft for an additional period of time while the remaining disputes are resolved.
Insurance Companies Face Long-Term Compensation Claims
Deputy General Director for Aviation Insurance at AlfaStrakhovanie, Ilya Kabachnik, believes that it is unlikely that the aircraft leasing disputes will be fully resolved by the end of 2028.
Currently, foreign aircraft lessors are pursuing compensation claims against their insurance companies for aircraft that they perceive to be lost, he explained. Insurers acquire the corresponding rights of recovery and can pursue compensation from parties or assets connected with the disputed aircraft once they pay these claims.
This adds an additional layer of legal complexity. Insurance companies may prolong disputes regarding aircraft that continue to operate within Russia by pursuing opportunities to recoup their financial losses.
The financial exposure is large due to the high cost of commercial passenger aircraft, which often involve multiple parties in various jurisdictions. Negotiations and legal proceedings that may linger for years are necessary to resolve claims regarding ownership, insurance, and compensation.
The Russian government’s proposed extension is not just an aviation regulatory modification; it is an effort to prevent domestic airline operations from being disrupted by unresolved international financial disputes.
Why Moscow Cannot Simply Return the Aircraft
Allowing the special regime to expire could create additional legal difficulties for Russian airlines.
Foreign aircraft owners could potentially initiate proceedings in Russian arbitration courts in the absence of an extension. This could potentially put domestic carriers in a precarious position when they attempt to justify their continued ownership of aircraft that belong to foreign leasing companies.
Given the contractual obligations that existed prior to the sanctions disrupting the international leasing system, Russian airlines would be required to establish a legal justification for maintaining assets that belong to other parties.
To prevent an immediate escalation of disputes within Russian courts, the existing legal framework would be maintained by extending the special regime.
Domestic Aircraft Production Remains the Long-Term Solution
Russia’s continued dependence on foreign-manufactured aircraft is closely connected to delays in developing and introducing its next generation of domestic passenger aircraft.
The MC-21 medium-haul passenger aircraft, the SJ-100 regional jet, and the Il-114-300 turboprop are the three main programs that Moscow is relying on to progressively reduce this dependence.
So far, certification has been finalized for only the Il-114-300 of these three aircraft. The aircraft is expected to start regular production in 2028. However, it will initially target a different market segment from the Airbus and Boeing models that are most commonly used by Russian airlines.
The MC-21 and SJ-100 are expected to undergo certification in 2027. The strategic significance of both programs is that they are designed to replace foreign aircraft in domestic airline operations.
President Vladimir Putin said in June 2026 that the MC-21, SJ-100, and Il-114-300 were preferable to their Western counterparts. Nevertheless, he also advocated for the faster delivery of the aircraft to Russian airlines.
A Bridge Until Domestic Deliveries
The proposed extension until 2028 indicates that Russia is unable to quickly replace its current fleet of foreign-manufactured aircraft. Although certification is progressing, integrating airline fleets, serial production, and delivery schedules will necessitate additional time. At present, it is essential to maintain passenger capacity by retaining foreign aircraft as domestic aviation programs transition to commercial deployment.