UK Court: Insurers Must Honor Claims for Jets Impounded by Russia

London’s High Court has ruled that insurers must honor claims under war-risk policies for 147 aircraft and 16 engines valued at $4.5 billion, retained by Russia following its 2022 invasion of Ukraine.

Published on June 12, 2025

Aircraft grounded at airport

London’s High Court has ruled that global insurers, including Lloyd’s, AIG, Chubb, and Swiss Re, must honor claims from aircraft lessors for commercial jets retained by Russia following its 2022 invasion of Ukraine. The court found that the loss of 147 aircraft and 16 engines, valued at approximately $4.5 billion, falls under war-risk policy provisions, reports Insurance Business Magazine.

Legal Ruling and Policy Interpretation

In a decision that could influence similar litigation in Ireland and the United States, Justice Butcher concluded that lessors are entitled to pursue claims under their war-risk coverage. The case was brought by major leasing firms such as AerCap Holdings NV and Dubai Aerospace Enterprise (DAE). The judge emphasized that Russia’s March 2022 export ban and emergency legislation made recovery of the aircraft legally and practically impossible, thus constituting a loss under the terms of the policies.

Insurers had argued that since Russian airlines continued to operate the aircraft, the planes were not technically lost. However, the court rejected this argument, affirming that the legal and physical barriers to recovery rendered the aircraft lost in insurance terms.

Scope of the Claims

AerCap initially sought $3.4 billion in compensation, although the claim has been reduced to roughly $2 billion following some settlements and asset recoveries. Its war-risk insurance was capped at $1.2 billion. As of early 2024, AerCap still had 116 aircraft and 15 engines located in Russia, with many operated by Russian carriers such as Aeroflot.

DAE, which settled some claims with AXA XL, continues to seek recovery for 19 aircraft not included in that agreement. The broader case touches on the status of around 400 aircraft still affected by the Russian government’s post-invasion policies.

Implications for Ongoing Litigation

The High Court’s decision offers important legal clarification on war-risk insurance in cases of state expropriation. It strengthens the legal standing of lessors who have not settled and are still pursuing claims. The judgment may serve as persuasive precedent in related cases, particularly those unfolding in other jurisdictions with similar policy language.

Julian Acratopulo, legal counsel for some of the lessors, noted the ruling as a confirmation that the unprecedented geopolitical actions taken by Russia fall squarely within the scope of coverage intended by such policies.

Industry and Market Reaction

The outcome is expected to prompt reassessment of aviation war-risk policy structures and the language used in coverage terms. While formal statements from the lessors are pending, the decision has attracted attention across the global insurance and aviation sectors.

As legal actions continue elsewhere, the UK ruling will likely be closely examined for guidance, although it is not legally binding outside the jurisdiction.

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