Rostec subsidiary Ilyushin Finance Company has filed a multi-million dollar lawsuit against Airbus Canada in a Moscow-based civil court. It's about a purchase agreement that was concluded with Bombardier in 2013.

Due to the takeover of the C-Series program by Airbus, this aircraft type has now been renamed. Bombardier continues to hold a minority stake in Airbus Canada. In 2013, the Russian lessor concluded a purchase agreement for 32 CS300s (now A220-300s).

Adjustments were made as the order progressed, as the order was initially reduced to 20 units. This step was taken in 2016. There have been no deliveries to date because, due to Western sanctions that were introduced in response to Russia's military activities in Ukraine, manufacturers are simply not permitted to deliver to the Russian Federation.

Now Ilyushin Finance wants the advance payments already made to Airbus Canada back. This is likely to be a difficult undertaking, because Russian rulings are unlikely to be enforceable, especially in Canada, and on top of that, regular payments to Russian companies affected by sanctions are not permitted or possible.

Incidentally, the lawsuit that has now become known is not an isolated case. The sister company Aviacapital had already filed a lawsuit last year for the repayment of the advance payments. This case is also being heard in Moscow. It's about 17 Airbus A350s that were supposed to be leased to Aeroflot, but the Russian Lessor was no longer allowed to take over the machines.