The High Court in London has ruled that insurers must compensate aircraft leasing companies for losses exceeding $1bn related to jets stranded in Russia following the country’s invasion of Ukraine in February 2022.  

This follows a lawsuit, led by leasing companies including Ireland’s AerCap and Dubai Aerospace Enterprise (DAE), against insurers such as AIG, Lloyd’s of London, Chubb and Swiss Re.  

Justice Christopher Butcher concluded that 147 aircraft and engines, valued at up to $4.7bn, were “lost” on 10 March 2022, when Russian legislation banned the export of aircraft and equipment.  

Butcher attributed the loss to “an act or order of the Russian government”.  

This allowed lessors to recover under their war risks insurance policies, rather than broader all risks policies. 

AerCap, an aircraft lessor, secured $1.035bn for 116 aircraft and 15 engines. This was stated by AerCap’s law firm Herbert Smith Freehills Kramer. 

DAE, which sought to recover losses for 22 aircraft, managed to retrieve three but lost the rest, according to the Guardian.  

Other claimants included Dubai’s Falcon and Genesis, Merx Aviation and KDAC Aviation Finance, which settled all its claims during the trial, Butcher said. 

The judge ruled that EU and US sanctions did not prevent insurers from indemnifying the lessors.  

The case, described by Butcher as “an unusually demanding piece of litigation”, followed Western sanctions that forced leasing companies to terminate contracts with Russian airlines by 28 March 2022.  

Russia subsequently re-registered many planes without owners’ consent, prompting legal action in London and Dublin.