Washington sanctions Russia’s VEB-Leasin

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned the Russian state-owned development bank VEB Vnesheconombank and its subsidiaries, including aircraft lessor VEB-Leasing, in response to Russian aggression in Ukraine.

According to the ch-aviation fleets ownership, VEB-Leasing owns and manages 76 tracked aircraft, including five A321-200s, two B737-300s, three B737-800s, two B747-400s, one B767-200(ER), one B767-300(ER), one B777-200(ER), three B777-300s, one B777-300(ER), and fifty-seven SSJ 100/95Bs. Its largest customers are in Russia and include Rossiya (a member of the Aeroflot Group) with 47 leased aircraft, Aeroflot with 14, and Yakutia Airlines with one. The lessor also has customers in China (9 Air, Hunan Airlines, and Ruili Airlines) and in Pakistan (AirBlue).

The only aircraft owned by VEB-Leasing which is deployed to the United States is VQ-BIL (msn 41692), a B777-300(ER) operated by Aeroflot, which last flew to Los Angeles Int’l on January 19, 2022.

VEB-Leasing did not respond to ch-aviation’s request for comment on the impact of these new sanctions on its business.

Under the OFAC designation, any American financial entity, whether located in the US or abroad, can only engage in business with any sanctioned entities and individuals after receiving clearance from the administration.

The US Treasury imposed sanctions on Russia in response to its recognition of the Donetsk People’s Republic and the Luhansk People’s Republic, two Russia-sponsored separatist entities in eastern Ukraine, as independent states.

“We continue to monitor Russia’s actions and if it further invades Ukraine, the United States will swiftly impose expansive economic sanctions that will have a severe and lasting impact on Russia’s economy,” Secretary of the Treasury Janet Yellen said.