LOS ANGELES, CALIFORNIA — A new Russian law on leased aircraft showed Moscow could confiscate leased planes from foreign companies. It might help lessors claim insurance.

Many aircraft leased from western leasing companies are currently stranded in Russia, the sanction-hit country over the invasion of Ukraine.

"It the law helps the insurance question because it demonstrates the intent to confiscate which is, I think, a critical aspect of our war-risk insurance,"

Air Lease chairman Steven Udvar-Házy said on Wednesday.

The new law allows Russian airlines to place airplanes leased from foreign lessors on the country's aircraft register and has raised fears of a mass default for some leasing companies having a large number of aircraft with Russian airlines.
Global leasing companies have been scrambling to repossess more than 400 jets worth almost $10 billion from Russian airlines, who have mostly been unresponsive to demands for surrendering the jets. That has thrown up the possibility of a long-drawn tussle between lessors and insurers, who could face multi-billion dollar payouts.

The law has prompted Dublin-based AerCap, the world's largest aircraft leasing company, to notify insurers of a potential $1 billion loss, according to a report published in The Insurer.

Russia said the law aims "to ensure the uninterrupted functioning of activities in the field of civil aviation"