Foreign-leased planes to be paid for in rubles

Russian President Vladimir Putin signed a law on Friday allowing the nation’s airline companies to pay creditors from “unfriendly countries” for the leasing, renting, and purchasing of aircraft in rubles. The ruling mainly concerns Boeing and Airbus planes flown by Russian airlines.

According to the document, published on a legal information portal, the funds will be transferred to an account opened with an unsanctioned Russian bank. The same applies to the leasing and purchase of auxiliary power units and aircraft engines.

Payments will be calculated based on the Russian Central Bank’s exchange rate on the date of fulfillment of obligations. Payments in foreign currency can only be approved by a special government commission, the decree states.

Leasing companies scrapped their contracts with Russian airlines last month and demanded that they return 500 planes, following sanctions that banned the supply of aircraft and aircraft parts to Russia over the conflict in Ukraine. In response, Putin signed a law allowing Russian airlines to re-register foreign-owned airplanes and continue flying them domestically.

For more stories on economy & finance visit RT's business section