The EU demanded that all Russian leases on Airbus jets—over 500 of them—be cancelled. It also blocked the sale of Airbus and Boeing parts to Russia and forbade Russian planes from being serviced. It also closed its airspace to Russian planes and Russia closed its airspace to EU planes in response. The EU also blocked the SWIFT payment system.
What does this all mean?
• The European leasing companies will have to pay Russia huge fines for canceling the leases but can’t because SWIFT isn’t working. The fees are adding up daily…
• The European leasing companies have to get their planes out of Russian territory but can’t because their flight crews can’t get into Russia. Lets say they do somehow get to Russia, however once they take possession of the planes the planes won’t be allowed to take off (airspace is closed).
• The planes can no longer be serviced according to the maintenance schedule, which means that in a couple of months they won’t be able to fly at all.
• Given that this is a force majeur circumstance, the Russian government can very easily nationalize these planes ($350-$400B), including all of the intellectual property and patent rights contained therein, and start making their own parts and providing their own service.
• Given all of the above, the obvious choice for the European leasing companies to declare bankruptcy and cease operations. Company representatives have said as much.
That is just one example; there are many others. What we seem to be observing is a bout of collective insanity in the West that is resulting in a sort of collective economic and political “suicide by Russia.”
What happens when Russia turns off the gas supplies to EU’s economy and nations like Austria (90% dependent on Russian gas), Germany, Italy, Poland…
One can even ponder a guess if the western insanity led by the United States and the UK is really a purposeful destruction of western economies for their coveted “global reset” and continuing their “Build Back Better” agenda which was introduced during Covid-19…