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U.S. cracks down on Russian airlines after flights violated export controls

2022.04.07 17:16

U.S. cracks down on Russian airlines after flights violated export controls
FILE PHOTO: An Aeroflot – Russian Airlines passenger plane lands at Sheremetyevo International Airport in Moscow, Russia March 12, 2022. REUTERS/Marina Lystseva

By David Shepardson and Karen Freifeld

WASHINGTON/NEW YORK (Reuters) – The U.S. Commerce Department issued enforcement actions against Aeroflot, Azur Air, and UTair on Thursday, saying the three Russian airlines violated American export controls issued in the wake of Russia’s invasion of Ukraine.

The decision comes after the United States identified more than 170 Boeing (NYSE:BA) airplanes that Russian airlines were operating in violation of U.S. sanctions, including about 40 Aeroflot Boeing 737 and 777 airplanes. Thursday’s enforcement action denies the three airlines export privileges and targets the entire airlines, not specific planes.

Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod said the government believes the orders mean “that Aeroflot, Azur Air and UTair and their fleet of aircraft will over time largely be unable to continue flying either internationally or domestically as they are now cut off from the international support and the U.S. parts and related services they need to maintain and support their fleets.”

The Commerce Department said Aeroflot continued to fly airplanes it had placed restrictions on in March to Beijing, Delhi, Antalya and Istanbul, Dubai, and on some domestic Russian flights.

Any U.S.-origin aircraft or foreign aircraft that includes more than 25% controlled U.S.-origin content is subject to a license requirement if it is Russian-owned or operated and exported to Russia.

The United States, European Union and other countries have barred Russian planes from U.S. airspace.

Russia’s biggest cargo airline Volga-Dnepr Group, said on March 18 it suspended all flights using Boeing aircraft due to Western sanctions. Volga-Dnepr said it stopped operations of two of its subsidiaries – AirBridgeCargo and Atran. S7, Russia’s biggest private airline and second largest overall, also said on March 4 it was ceasing all international flights.

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