Air Lease Corp. doesn’t plan to take writedowns in the near term for jetliners caught up in sanctions aimed at crippling air travel in Russia in response to its invasion of Ukraine.

It’s too early to determine losses from the Boeing Co. and Airbus SE aircraft leased to Russia’s carriers, Air Lease executives said Wednesday. But insurance—including possible government intervention—and the ability to get payments from nonsanctioned banks are among the factors mitigating the company’s risk.

Russian officials have prodded the nation’s airlines to re-register planes at home and to curb international flying so that an estimated $10 billion in foreign-owned jets can’t be repossessed by their owners.

Air Lease, the biggest aircraft financier in the U.S., has avoided doing business with state-owned airlines, such as Aeroflot PJSC, executives said Wednesday at a JPMorgan Chase & Co. investor conference.

That’s an advantage in the current environment since Russia’s privately owned carriers don’t want to torch long-time relationships with foreign lessors.

“They very much see an end game beyond this crisis,” said Chief Executive Officer John Plueger. Russia accounts for less than 5% of the Los Angeles-based company’s aircraft portfolio on a net-value basis.

Chief Executive Officer John Plueger
Chief Executive Officer John Plueger

“There’s been a great deal of cooperation in the recovery of aircraft, return of aircraft,” said Steven Udvar-Hazy, Air Lease’s chairman and co-founder. “We’re making good headway in minimizing our exposure on a weekly basis.” In some cases, carriers have been able to make payments through banks that haven’t been sanctioned by the U.S. and the European Union.

Air Lease rose 2.8% to $41.01 at 3:35 p.m. in New York, buoyed by details of the company’s position in Russia. Through Tuesday, the stock had declined 10% since the invasion.

Air Lease is finding other takers for Russia-bound aircraft on order, aided by a shortage that has left few Boeing and Airbus narrow-body jets available through 2024. The leasing company is girding for a possible fight with insurers, however, if it ultimately records impairments over its Russia business.

“If insurance becomes a big issue, I can every easily see governments stepping in at some point,” Plueger said. He noted that the U.S. provided war-risk insurance following the attacks of Sept. 11, 2001. “I can’t say that’s going to happen. I’m saying it’s happened before.”