Dobrolet (Moscow Sheremetyevo) has announced it is temporarily suspending its flights with effect from August 4. In a statement, the carrier blamed the recent imposition of European Union sanctions for the move. Dobrolet has launched earlier this year and currently operates two B737-800s.

"Several European counterparties have notified Dobrolet of their refusal to fulfil their obligations to the airline in connection with the economic sanctions enacted by the European Union," parent Aeroflot (SU, Moscow Sheremetyevo) said in a statement. "Leasing, repair and maintenance services and airplane insurance agreements were annulled, as well as the provision of aeronautical information. Due to the unprecedented pressure that has been applied to Dobrolet by its European counterparties, the carrier has no option but to suspend flights and ticket sales."

Dobrolet said arrangements would be made to rebook customers on flights with other carriers with sister carrier Orenair (Orenburg) taking over Dobrolet's routes from Moscow Sheremetyevo to Simferopol and Volgograd for the time being and passengers on other routes offered full refunds.

Last week, the LCC, along with two other entities - the National Commercial Bank and weapons manufacturer Almaz-Antey - were added to the European Union's sanctions list. The Russian National Commercial Bank was the first Russian bank to invest in Russian-occupied Crimea after the region's annexation earlier this year.

The Europeans say the move is warranted in light of Russia's involvement in the ongoing Ukrainian crisis which last month saw the downing of a Malaysia Airlines (MH, Kuala Lumpur International) B777-200(ER) enroute from Amsterdam Schiphol to Kuala Lumpur International over eastern Ukraine. All 298 passengers on-board were killed of which a significant proportion were Dutch nationals.

The European Union, along with the United States, claim the aircraft was shot down using a Russian-supplied Surface-to-Air missile.