While everyone is, appropriately, focused on the death and destruction in Ukraine, this is far from the only serious problem. There is the obvious problem with fuel prices. It is even reported that Russia reversed the flow of natural gas to Germany, just in time for that warm March weather. But one of the biggest financial losses is mostly ignored. Most people know that countries stopped airlines based in Russia from going anywhere. But they also stopped airplanes, already in Russia, from going anywhere. Those airplanes are not cheap, there are a lot of them, and the cost to replace them is enormous. Aircraft-leasing companies are trying to recover those planes, but this is not exactly an ideal situation. Some of them have warned insurance companies of potential claims and insurance companies have started cancelling policies and may challenge claims since the planes aren’t actually damaged, just grounded.

Putin may be pure evil, but he made a decision that allowed Russian airlines to keep their aircraft until the end of the lease and re-register in Russia. Yet according to the European Union sanctions, leasing companies have until March 28 to cancel contracts. Insurance carriers are scrambling to avoid paying for this mess.

The following article explains:

Airplanes in Russia Promise Insurance Havoc with Claims on the Way | ProgramBusiness

It turns out there are about 509 airframes leased to Russian Operators. The estimated value of these claims is estimated at $1.7 billion. If all are considered damaged the claims could get north of $4 billion. Anyone in the insurance industry knows that one is far more likely to underestimate the extent of the damage than to exaggerate it.

One notes that some planes were seized by Iraqi forces during the invasion of Kuwait. The insurance industry moved at light speed to resolve those claims and as a result the litigation only lasted for about 20 years.

Not all the planes in Russia were leased to Russian operators. Airlines from other countries also had planes stranded in Russia. Good luck with that. Any volunteers to fly to risk and try to steal one of those planes back?

In 1939, when Hitler invaded Poland, the result was World War II. But the situation in 1939 is very different than the situation today. For one thing, no one was worried about what happened to hundreds of airliners. To some extent we are already involved in World War III, the real question is how it will be fought. Many worry about this becoming a nuclear war. That is a legitimate concern, but the reality is that this is far more complicated than anyone realizes. For example, some historians believe the Rothschild’s almost single handedly funded the war of 1812.

Did the Rothschilds fund the War of 1812? – JanetPanic.com

Di you ever wonder where Hitler got the money to fund his war machine. The follow article says at least part of this was funded by companies like General Motors, General Electric, Dupont, and wall street companies like J.P Morgan and Chase.

Wall Street and the Rise of Hitler – the history of banks who funded Nazis (bastabalkana.com)

The point being that someone has to finance this mess. While all of us have been focusing on Putin and his war machine, a little attention should be paid to the money involved. Once again, follow the money. History teaches us that the filthy rich are truly filthy, but they are also irredeemably greedy. Right now, it looks like Putin is costing everyone a lot of money. If the truly rich decide enough is enough, well the buck truly stops there.

TDM