Lloyd’s of London faces £6bn claim for planes stolen by Vladimir Putin: Insurers sued by owners of 400 planes worth £8bn seized by the Kremlin
- Dozens of claimants have filed multi-billion pound claims
- Case is the largest aviation insurance dispute ever
- Alleged the move by senior Kremlin figures was in retaliation against sanctions
Lloyd’s of London is facing a massive legal battle over hundreds of planes stolen by Russian President Vladimir Putin.
Dozens of plaintiffs, including Dubai’s ruling royal family, have filed multibillion-pound claims against the heritage insurance market and insurers including AIG and Chubb.
The case – the largest aviation insurance dispute ever – was brought after more than 400 western jets worth £8bn were seized by Putin’s government in the wake of his invasion of Ukraine last February. It is alleged that the move by senior Kremlin figures was in retaliation against UK and EU sanctions.
Putin laid out his position in a public speech last March when he stressed that “aircraft leased abroad would not be returned to the foreign lessors.” The Kremlin’s aim was to keep them as a source of spare parts for Russian airlines – such as ex-Manchester United sponsor Aeroflot – which already rely heavily on leased foreign aircraft.
Russian engineers can now cannibalize stolen Boeing and Airbus planes to secure spare parts they can no longer buy abroad due to sanctions.
Retaliation: More than 400 Western jets worth £8 billion were seized by Vladimir Putin’s government in the wake of his invasion of Ukraine
This has sparked safety fears among aviation experts and forced the head of Russia’s Federal Agency for Air Transport to issue a statement saying that “it has not become more dangerous to fly” in Russia. Lawyers from Dubai Aerospace Enterprise, led by Sheikh Ahmed bin Saeed Al Maktoum, and other plaintiffs have argued that the planes are “likely to be detained for years” because “there is currently no prospect of a resolution of the conflict in Ukraine.”
The Kremlin is beyond the reach of the London High Court, so the plane owners are targeting insurers for billions in losses. But the insurers claim no liability because the planes were not damaged or lost.
They claim Russia’s seizure of planes is “not permanent enough,” meaning leasing companies can still get the planes back when the war is over. Dubai Aerospace Enterprise is leading one case against the insurers, while a parallel claim has also been filed by Irish leasing giant AerCap, the world’s largest aircraft lessor.
A hearing will take place later this month. A City source said this could attract other interested parties who have yet to file claims.
Leading City attorney Ned Beale, who specializes in Russia-related litigation, said: “This is the largest aviation dispute of all time by value. And one of the most politically charged.’
He said he expects the insurers to drag their heels over such a potentially costly settlement, adding: ‘Nobody knows what’s going to happen. [in the war]. The insurers will hope for a radical change to avoid paying out billions.’
All parties have been approached for comment.