- The U.S. Commerce Department issued orders denying the export privileges for Aeroflot, Azur Air, and UTair, stating that the three Russian airlines violated American export controls imposed on Russia in the wake of the Ukraine war.
- The decision comes after the U.S. identified more than 170 Boeing Co (NYSE:BA) planes used by Russian airlines in breach of U.S. sanctions, including about 40 Aeroflot Boeing 737 and 777 planes, Reuters reported.
- "The Biden Administration has imposed historic sanctions on Russia for its unwarranted aggression in Ukraine. With today's temporary denial orders, the Department of Commerce takes another significant action to hold Putin and his enablers accountable for their inexcusable actions," said Commerce Secretary Gina M. Raimondo.
- Any U.S.-origin aircraft or foreign aircraft that includes more than 25% controlled U.S.-origin content is subject to a license requirement, if it is Russian-owned or operated and exported to Russia.
- The report noted that Russia's biggest cargo airline Volga-Dnepr Group, suspended all flights using Boeing aircraft due to Western sanctions.
- Price Action: BA shares are trading lower by 2.25% at $174.73 on the last check Thursday.
