UK sanctions on the Russian aviation sector are set to be extended, as the Treasury announces impending legislation to ban access to the UK insurance market by Russian companies in the aviation and space industries, echoing steps already taken by the EU with effect since 26 February.
Together with recent announcements by Boeing and Airbus that they are suspending the supply of spare parts and services to Russian airlines, as well as various airspace restrictions imposed, the impact of sanctions on the Russian aviation industry appears likely to only increase.
Further details of this new legislation are yet to be revealed, though the Treasury release notes that access both “directly or indirectly” will be restricted. While the scope and effect of these specific sanctions is therefore still awaited, both insurers and insureds (whether operators, lessors or others) are likely to be reviewing their respective positions especially with regard to cover in the meantime, and as the picture becomes clearer.
Should you require any advice in this regard, or for further information, please contact me or my colleagues Gillie Belsham or Anna Anatolitou in the Aviation team, or your usual contact at Ince, who will be happy to assist.
Russian companies in the aviation or space industry will be prevented from making use of UK-based insurance or reinsurance services directly or indirectly