The Commercial Court in Dublin has upheld an order blocking State Transport Leasing Company (GTLK) from enforcing €1.2bn Singapore arbitral awards against AerCap Ireland Limited.
The awards arise from 2018 leases of 10 Boeing 777-300ERs terminated in 2022 due to sanctions after Russia’s invasion of Ukraine; GTLK defaulted on €800m payments.
Justice Robert Barr dismisses the enforcement under the New York Convention, citing EU Regulation 833/2014 prohibitions on funds to designated Russian entities.
AerCap returned the aircraft in 2019; a 2024 panel ruled AerCap liable, but the court accepts AerCap’s sanctions compliance argument based on European Commission evidence.
GTLK Europe DAC liquidated in 2023 with €450m creditor recovery; liquidators pursue Russian parent claims amid Hague treaty reviews, while 400 Western jets remain in Russia with €2.8bn settlements since 2022.
The grounded aircraft sit idle in storage facilities in Shannon, with no flights logged since March 2022.
