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Aircraft leasing firm Dubai Aerospace has filed a $1bn insurance claim to cover losses linked to its assets stuck in Russia.
The lessor wrote off aircraft with Russian airlines worth $538m.
“We proactively addressed the loss of control of our aircraft on lease to airlines in Russia by writing off our net investment. We have filed claims of $1bn under certain insurance policies and expect to file additional claims to recover amounts due to us,” Dubai Aerospace said in a statement.
After the Russian invasion of Ukraine, the US-led western alliance imposed severe sanctions on Moscow.
To counter these, Russian President Vladimir Putin allowed Russian airlines to register foreign jets in the country.
Ever since the war began, insurers have been preparing for unprecedented claims from aircraft leasing firms whose planes are stuck in Russia.
Marsh global head of aviation and space Garrett Hanrahan had said: “The magnitude of potential loss here is staggering. This could potentially be the biggest aviation insurance loss in market history.”
According to some estimates, the aviation industry could be facing a loss of up to $10bn due to the conflict.
Earlier, Irish aircraft leasing firm AerCap filed a $3.5bn insurance claim for its aviation assets stuck in Russia.
AerCap had 135 aircraft and 14 engines rented to Russian customers.
Meanwhile, the European Union is prepping a new package of sanctions that would impose a ban on insuring ships carrying Russian oil.