FINANCE

Chinese Lessor Gets $23 Million Insurance Payout for Jets Stranded in Russia

Published: Aug. 12, 2025 4:23 a.m. GMT+8

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Sunward Intelligent has secured a $23 million insurance payment for three aircraft stranded in Russia

Sunward Intelligent Equipment Co. Ltd., the Chinese construction-equipment manufacturer, has secured an insurance payout for three aircraft stranded in Russia since the outbreak of the Ukraine war, resolving one of many disputes unsettling the global insurance market.

The Shenzhen-listed company said Monday that its wholly owned aircraft-leasing unit, Avmax Group Inc., reached a settlement with insurers after unsuccessful attempts to reclaim the planes from Russian lessees. The agreement provides a gross payment of $29 million, leaving Avmax with $22.97 million after legal fees and other costs.

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Sunward Intelligent Equipment secured a $29 million insurance payout for three aircraft stranded in Russia, netting $22.97 million after costs.
The settlement adds 126 million yuan ($17.6 million) to Avmax’s post-tax profit, equaling 172.92% of their prior year’s audited net profit.
Industry-wide, lessors' insurance claims total billions after Russia’s 2022 invasion of Ukraine, with a recent UK court ruling favoring lessors accelerating further settlements.

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Who’s Who

Sunward Intelligent Equipment Co. Ltd.: Sunward Intelligent Equipment Co. Ltd. is a Chinese construction-equipment manufacturer that recently secured a US$22.97 million insurance payout for three aircraft stranded in Russia due to the Ukraine war. This settlement significantly contributes to Avmax Group Inc.'s post-tax profit, its wholly-owned aircraft-leasing unit.

Avmax Group Inc.: Avmax Group Inc. is the wholly-owned aircraft-leasing unit of Sunward Intelligent Equipment Co. Ltd., a Chinese construction-equipment manufacturer. It recently reached a settlement with insurers for three aircraft stranded in Russia since the Ukraine war, receiving a gross payment of $29 million. This resolution is part of a larger dispute between aircraft lessors and insurers following the 2022 Russian invasion of Ukraine.

Liberty Mutual Insurance Group: Liberty Mutual Insurance Group, based in Boston, is the fifth-largest U.S. property and casualty insurer by market share. They were the lead underwriter in the Avmax case, involving three aircraft stranded in Russia due to the Ukraine war.

BOC Aviation: BOC Aviation, a subsidiary of Bank of China, incurred an $804 million impairment in mid-2022 due to 17 Boeing aircraft stranded in Russia. By 2023, they reached a settlement with Russian insurer NSK for eight of these planes, receiving $208 million.

Bank of China: BOC Aviation, a subsidiary of Bank of China, faced an $804 million impairment due to 17 Boeing aircraft stranded in Russia. The company later reached a settlement with Russian insurer NSK for eight of these planes, receiving $208 million.

NSK: NSK is a Russian insurer that reached a settlement with BOC Aviation, a Bank of China subsidiary, in 2023. This settlement involved eight aircraft stranded in Russia, for which NSK paid BOC Aviation $208 million.

AerCap Holdings NV: AerCap Holdings NV is the world's largest aircraft lessor. The company, along with others, sued insurers for up to $4.5 billion in claims related to aircraft stranded in Russia following the 2022 invasion of Ukraine. In June, a UK court ruled largely in favor of the lessors, a decision that could expedite other settlement disputes.

MHP Law Firm: MHP Law Firm is a Shanghai-based legal practice. They commented on a recent ruling by the Commercial and Property Courts of England and Wales regarding aircraft lessors and insurers, stating it could accelerate settlements in disputes involving aircraft leased to Russian operators.

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What Happened When

2022：: Russia's invasion of Ukraine begins, leading to stranded aircraft and insurance disputes.

Mid-2022：: BOC Aviation reports an $804 million impairment for 17 Boeing aircraft stuck in Russia.

2023：: BOC Aviation reaches a settlement with Russian insurer NSK for eight aircraft, receiving $208 million.

2024-06-11：: The Commercial and Property Courts of England and Wales issue a ruling largely in favor of aircraft lessors in insurance disputes related to stranded aircraft in Russia.

2025-08-11：: Sunward Intelligent Equipment Co. Ltd. announces that Avmax Group Inc. has reached a settlement with insurers for aircraft stranded in Russia and has received the net settlement amount.

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