Putin permits Russian airlines to pay foreign leasing firms in rubles

MOSCOW. April 1 (Interfax) - Russian airlines will be able to pay leasing companies from "unfriendly" countries for the use of aircraft and engines in rubles via accounts at Russian banks, according to a decree signed by Russian President Vladimir Putin and posted on the Internet portal for legal information.

"To determine that obligations to carry out rent, leasing and other payments (...) are deemed to be properly fulfilled if these obligations are fulfilled before their main resident business companies by the debtor transferring to the account of the main resident business company opened with a Russian lending institution, funds in rubles in an amount equivalent to the value of obligations in foreign currency (regardless of the currency in which such value is expressed) and calculated at the official exchange rate of the Central Bank of Russia on the date obligations are fulfilled," the decree says.

At the same time, the government was authorize to determine a procedure for settlements with lessors "other than that established by the decree hereof."

Several Western countries at the end of February imposed sanctions on Russia over the military operation in Ukraine, and some of them hit the aviation sector. They include a ban on the supply of civil aircraft and spare parts to Russia, and the provision of services for their maintenance and insurance. Aircraft already in operation in the country must, according to the sanctions, be returned to foreign leasing companies.

Most airlines have been notified that "sanctioned aircraft" are being recalled but have continued to operate them. Russia will keep most of its Boeing and Airbus aircraft despite the Western sanctions against its aviation industry, Deputy Prime Minister Yury Borisov said on March 31.