Russian airlines are in a steep rush due to the threat of bankruptcy

About 30 small and medium-sized Russian airlines, which provide 26% of domestic passenger transportation, are at risk of bankruptcy. The reason is the accumulated debts for the leasing of foreign aircraft, since after the introduction of sanctions in 2022, most of them stopped paying leasing payments.

This is reported by the Foreign Intelligence Service of Ukraine.

Due to restrictions on currency settlements, the Russian authorities allowed air carriers to transfer funds to special accounts in rubles, but foreign lessors do not accept such payments due to non-compliance with the terms of the contracts. As a result, the companies stopped paying debts, and the freed funds were directed to support the technical suitability of the aircraft fleet, the cost of which has increased significantly due to sanctions restrictions.

The government of the Russian Federation allowed to write off debts for payments in 2025, but according to current tax rules, these amounts will still be subject to a 25% income tax, which air carriers will not be able to pay.

The possible bankruptcy of small and medium-sized Russian airlines will have serious consequences for the aviation industry and the Russian economy in general. It is about reducing the availability of air transportation, reducing the level of their safety, losing jobs and reducing the investment attractiveness of the industry.

The increase in the tax burden in the context of the Russian government’s measures to fill the budget due to the war against Ukraine is a systemic factor that is gradually destroying various sectors of the Russian economy.

We remind you that in the Russian Federation, the cost of loans is growing rapidly and inflationary processes are accelerating, which inevitably brings the country’s economic crisis closer.