#What happened in the aircraft engine deal
Marine Equipments Centre Pvt. Ltd. located in Kochi, India, recently engaged in a notable transaction involving two aircraft engines purchased from a firm based in Luxembourg for approximately $17 million. Shortly after this acquisition, the engines were sold to Rossiya Airlines JSC for an estimated $24 million. Despite explicit contractual terms forbidding their re-export to Russia, the engines were shipped nonetheless.
The engines involved are CFM56-5B units, renowned for their reliability and performance, especially within the Airbus A320 family. The deal was facilitated by Vallair Asset Solutions, an aviation asset management company from Luxembourg, while Aman Aviation & Aerospace Solutions Pvt. Ltd. managed the transaction locally. This type of intermediation resulted in a significant markup of about $7 million, which equates to a 41% increase within a mere two-month period.
#How is the sanctions situation evolving?
As of April 30, 2026, it was reported that Russian airlines were operating around 460 Airbus and Boeing jets, bringing their fleet levels almost back to those seen before international sanctions were imposed in 2021. Instead of being grounded, these aircraft have been kept in service through a complex network of intermediaries spanning India, Turkey, the UAE, and Kazakhstan, which have facilitated the ongoing supply of aviation components to Russia despite existing sanctions.
Trade data reveals at least 30 exporters who continued delivering aviation parts to Russia. Many of these companies, including various Indian firms, implemented considerable markups to profit from these transactions.
#What were the specifics of the transaction?
MEC's acquisition and subsequent sale of the two CFM56-5B engines sheds light on the complexities of this operation. After purchasing the engines from Vallair, they quickly arrived in India and were resold within just a couple of months to Rossiya Airlines, part of the Aeroflot group. Despite clear prohibitions on re-exporting to Russia in the sales contract, these clauses were knowingly disregarded, resulting in a $7 million profit for those involved in the transaction chain.
Aman Aviation & Aerospace Solutions played a critical role as the intermediary. Ajay Kumar, the chairman of MEC, mentioned that the company ended its Russia-related operations after being instructed by Indian authorities.
MEC, however, was not acting alone. Other Indian companies, like Chandsara Aviation and Shreegee, were also engaged in exporting aircraft parts to organizations affiliated with Aeroflot and S7 Group, collectively reaping significant profits.
#How are Western suppliers responding to this situation?
Following the exposure of this diversion pipeline by Bloomberg, Western suppliers like FTAI Aviation and Vallair have taken steps to enhance their compliance measures regarding exports. This situation highlights the ongoing challenges in enforcing sanctions and maintaining compliance across international supply chains, especially in the realm of aircraft components.
The activities surrounding these transactions emphasize the need for vigilance and robust frameworks to ensure compliance with international sanctions moving forward.