The ICC Banking Commission conducted its final meeting of 2024 virtually via Teams on 20-21 November. Four separate portions of the event open to Banking Commission members and ICC National Committee representatives took place.
Even in the initial weeks following imposition of sanctions after Russia’s February 2022 invasion of Ukraine, the aviation industry was bracing for prolonged, exceptionally costly litigation over claims arising from an estimated 400 leased aircraft believed to be stranded in Russia. According to Insurance Insider, market sources have estimated the value of aircraft stranded in Russia at USD 25b-30b and insured exposures at around USD 12b-15b in the event of a war loss.
“Given the amount of money at stake, it seems highly likely that a final determination will only be reached after years of expensive litigation, with cases expected to be brought by the insureds, the airline leasing companies”, reported Insurance Insider in March 2022.
As regards the extent of loss endured in the insurance industry, a great deal hinges on the way sanctions are interpreted and will affect policy coverage.
Multiple cases have also been initiated regarding letters of credit supporting aircraft leasing payments. DCW previously reported (April 2022, p. 6) that a subsidiary of Irish-based aircraft leasing giant AerCap filed a USD 45.8m suit in London against UniCredit, claiming that the Italian bank is in breach of its obligations under LCs backing payments on behalf of Russia’s Sberbank. Aircraft lessor Aircastle has also sued UniCredit under LCs valued at approximately USD 25m relating to aircraft remaining in Russia.
