More than 500 commercial aircraft owned by western companies are currently stranded in Russia, where they had been leased, since new sanctions came into force.

In response to Vladimir Putin’s invasion of Ukraine, the EU, UK, US and Canada cancelled all the leases by force majeure with final effect on March 28. Lessors have seized two or three Russian leased aircraft in foreign cities — leaving them with an estimated $12bn to $15bn worth of aeroplane assets in legal limbo.

While the western lessors will book losses on the forgone revenue as well as, prospectively, the value of the aircraft, it does not appear the Russian situation will lead to industry insolvencies. More seriously, though, it brings into question the legal premise for the industry, namely the lessor’s or owner’s right to repossess aircraft that have broken the terms of their leases.