Russia Seeks to Unfreeze US Funds to Buy Boeing Jets
Russia has proposed a controversial plan to unfreeze its funds held in the United States, with the aim of using the money specifically to purchase Boeing aircraft, according to a report by Bloomberg citing anonymous sources familiar with the discussions. The proposal is part of broader diplomatic talks between Washington and Moscow, focused on the ongoing war in Ukraine and potential paths toward a ceasefire.
While not a formal condition for halting hostilities, Russian negotiators have reportedly indicated that any new aircraft deals would only be considered if fighting were paused. The idea of unfreezing assets in exchange for aircraft purchases could serve as a confidence-building step in what have been limited and complex negotiations.
Following the invasion of Ukraine in February 2022, the United States and European Union imposed sweeping sanctions on Russia’s aviation industry, including bans on aircraft sales, leases, spare parts, and maintenance services. These sanctions also included the freezing of approximately USD 280 billion in Russian assets worldwide, though it is unclear how much of that total is specifically held in the US.
If approved, the proposal would represent a dramatic shift in the current aviation sanctions regime. It could potentially allow Russian airlines to modernize their fleets with new Boeing jets, but only under the condition that the funding used stems from previously frozen assets.
Data from the ch-aviation fleets module reveals that two Russian carriers still have pending orders with Boeing. UTair has an order for 28 Boeing 737 MAX 8 aircraft, and Volga-Dnepr Airlines holds a separate order for six Boeing 777-200 freighters. These orders have remained dormant since sanctions were enforced.
Russia’s Foreign Minister Sergey Lavrov recently reiterated the country’s appeal for sanctions relief on its state-owned flag carrier Aeroflot. The request includes allowing the airline to resume operations to the United States, which were halted under current aviation bans. Russian carriers have been barred from US and EU airspace since 2022, effectively cutting off international connectivity and hampering fleet renewal efforts.
While the US has yet to respond publicly to the proposal, the suggestion has stirred debate over the potential re-engagement of American aerospace firms with Russia, especially in light of ongoing geopolitical tensions. Any such deal would face intense scrutiny, not only from the US government but also from allies and aviation regulatory bodies.
As negotiations continue, the future of Russia’s commercial aviation sector remains uncertain. The country’s existing fleet faces mounting challenges due to lack of access to Western-built aircraft and parts, forcing airlines to extend the service life of aging jets and increasingly turn to domestic alternatives or used aircraft from non-Western sources.
If accepted, the proposal to purchase new Boeing aircraft using unfrozen US-based funds could signal a tentative reopening of limited aviation trade, but only in conjunction with significant diplomatic progress.
Related News: https://suspicious-zhukovsky.67-21-117-18.plesk.page/category/air-travel-business/airline-finance/
Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com