Aviation lessors have filed an appeal against a US court ruling that upheld sanctions blocking €63.6m in lease payments from Russian airlines.
The case, lodged in the US Court of Appeals for the District of Columbia Circuit, involves payments due under leases for Boeing 777F freighters operated by AirBridgeCargo Airlines, a subsidiary of Volga-Dnepr Group.
The lessors, identified as US-based entities including SMBC Aviation Capital and GECAS, argued the sanctions violate due process and exceed statutory authority under the International Emergency Economic Powers Act.
The district court in Washington DC had sided with the US Department of the Treasury’s Office of Foreign Assets Control in November, stating the payments would benefit sanctioned entities. Lessors sought an emergency stay to halt enforcement, citing risks to global aviation finance amid Russia’s continued use of the 12 freighters despite repossession attempts thwarted by export bans since 2022.
The appeal follows a London High Court victory by Aercap and others in June where lessors recovered €4.2bn under war risk policies for 400 aircraft, though Russian reinsurers face separate proceedings set for autumn 2026.
Volga-Dnepr, hit by US sanctions in November 2024, operates the fleet under a Russian government waiver, prompting lessors to demand €183m in total arrears. Treasury officials defended the block as necessary to deter evasion, with no timeline for the appeals court’s decision.
Industry analysts estimated the dispute affects €9bn in total lessor claims from Russia, with appeals potentially reaching the Supreme Court. Lessors warned of broader impacts on leasing markets, urging congressional review of sanctions frameworks.
