The following is a significant development in the economic reaction to Russia’s invasion of Ukraine:
Russian airlines will be prohibited from acquiring aircraft, spares and equipment under a sanctions initiative to be imposed by the European Commission.
Commission president Ursula von der Leyen outlined the measures on 25 February, following a special meeting of the European Council.
She says the Commission will “ban the sale of all aircraft”, as well as related equipment, to Russian carriers.
“This will degrade the key sector of Russia’s economy and the country’s connectivity,” adds von der Leyen, pointing out that Russia is “massively depending” on European-, US- and Canadian-built aircraft. – Flight Global
Russian carriers are not major customers for Western-built airliners, but removing support for Russian civil aviation broadens the scope of the European Union’s response to Putin’s aggression beyond sanctions targeting Russian oligarchs and the country’s financial system.
Putin, having committed himself to an invasion, may now respond in kind by slowing the flow of raw materials used by Western civil aerospace manufacturers. That raises the risks for the aerospace supply chain, and it’s a situation we are going to be watching closely as we forecast production rates at Airbus, Boeing, and other manufacturers.