(Reuters) – President Vladimir Putin said on Thursday that Russia would provide domestic airlines with 100 billion roubles ($1.25 billion) in support to help them deal with the consequences of international sanctions.
In televised remarks at the end of a meeting with representatives of airlines and aircraft manufacturers, he said domestic flights would receive government subsidies in 2022.
The world’s 11th largest aviation market is under severe pressure as the United States and Europe on one side and Russia on the other have each closed their airspace to the other’s airlines. In addition, Russian airlines can no longer buy parts or maintenance services from Europe or the United States.
Because of the sanctions, imposed in response to Russia’s decision to send its armed forces into Ukraine, Western aircraft lessors have also been forced to terminate contracts under which Russian airlines were leasing more than 500 aircraft.
Putin said he had instructed the government to work out measures to ease the burden of leasing payments on the airlines.
Most of the leased planes remain in Russia, which has passed a law allowing them to be entered on its own aircraft register. But Russian airlines have been hesitant to use the law, fearing that they might jeopardise ties with international partners.
“As for leasing payments, let me remind you that a significant part of them were supposed to be paid to companies from so-called unfriendly countries, and they violated their contractual obligations,” Putin said.
“In this regard, I ask the government to prepare a set of measures to address the problems of leasing payments, naturally considering which country this or that leasing company is based in.”
($1 = 80.1250 roubles)
(Writing by Kevin Liffey; Editing by Mark Trevelyan, William Maclean)
