Chinese Leasing Companies Face Heavy Losses After Planes Detained in Russia

Chinese aircraft lessors have written off billions of dollars in impaired assets due to the detention of more than 70 leased aircraft in Russia.

China's C919 passenger jet lands on its maiden flight at Pudong International Airport in Shanghai, China, on May 5, 2017. Aly Song/AFP via Getty Images

Since the outbreak of the Russia–Ukraine war in 2022, Chinese aircraft leasing companies have incurred billions of dollars in losses as more than 70 jets leased to Russian airlines remain stranded inside Russia, according to Chinese state media.

A wave of legal developments was set off by a landmark UK High Court ruling in June that favored aircraft lessors. These incidents have reignited concerns about the long-term impact on Chinese lessors and their ability to recoup value from aircraft still trapped in Russia.