Lessor SMBC takes $1.6 billion impairment on aircraft in Russia

DUBLIN (Reuters) – Aircraft lessor SMBC Aviation Capital on Friday recorded an impairment of $1.6 billion to cover the full financial impact of having 34 jets stuck in Russia after European Union sanctions that forced the termination of all Russian leases.

Irish-headquartered SMBC, which is owned by a consortium including Japan’s Sumitomo Corp and Sumitomo Mitsui Financial Group, said it expects to make substantial recoveries from its significant insurance coverage.

(Reporting by Padraic Halpin; Editing by David Goodman)