SMBC Aviation Capital has announced it received an approximately USD710 million insurance settlement from Russian state-owned insurer NSK in relation to seventeen aircraft and associated engines leased to Aeroflot Group carriers.

The lessor specified that the settlement covered sixteen aircraft and associated engines owned by SMBC, and one aircraft with engines managed by the lessor. It stressed that the cash payout was in compliance with all current laws and sanctions imposed on Russia.

"SMBC Aviation Capital will continue to actively pursue its litigation in the Irish courts under its own insurance policies. SMBC Aviation Capital will also continue its efforts to seek to mitigate its losses in respect of its aircraft that were previously leased to other Russian airlines," it added.

The settlement is the second large agreement between Western lessors and Russian insurers in the span of one month. In early September, AerCap reached a settlement over 17 aircraft and five spare engines leased to Aeroflot and Rossiya. It revealed in an SEC filing that the deal included an approximately USD645 million cash payout.