Russia closes airspace to 36 countries as airlines brace for chaos

Airlines are bracing for a potentially lengthy sanctions war after the EU banned Russian airlines and Moscow retaliated by closing its airspace to 36 countries. 

Dozens of flights were cancelled or sent on costly detours as the crisis hit airline shares.

The rerouting meant Kazakhstan's airspace saw a tripling of flights to more than 450.

On Monday, the Kremlin vowed that it would take reciprocal measures to counter Western sanctions against Russia's aviation industry.

In a statement the Federal Air Transport Agency (Rosaviation) said: "In accordance with the norms of international law, as a response to the ban of European states on flights of civil aircraft operated by Russian air carriers and/or registered in Russia, a restriction on flights of air carriers of 36 states has been introduced," the agency said in a statement.

The tit-for-tat move is to affect carriers of Albania, Austria, Anguilla, Belgium, Bulgaria, British Virgin Islands, Great Britain, Hungary, Germany, Gibraltar, Greece, Jersey, Ireland, Iceland, Spain, Italy, Canada, the Greek-administered Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Finland, France, Croatia, Czechia, Sweden, Estonia, and Denmark, including Greenland and the Faroe Islands.

Flights from these countries and regions will only be allowed to enter Russian airspace with a special permit issued by Rosaviation or the Russian Foreign Ministry.

As part of a sanctions package, the EU on Sunday banned Russian aircraft from landing, taking off, or flying over the territory of the EU. 

The move also barred companies in the bloc from selling civilian aircraft and spare parts to Russia.

Shares in European airlines and airport operators were down 3-6 percent in early trade, while Finnish national carrier Finnair cut its guidance with its shares down 21 percent in afternoon trade.

READ MORE: List of countries banning Russian planes from their air space grows

Supply chain disruption

Airspace shutdowns and flight cancellations will also set to affect cargo traffic, further exacerbating global supply chain woes caused as the pandemic slows cargo handling worldwide.

"Due to the ongoing dramatic developments in the Russia-Ukraine conflict, Lufthansa will no longer use Russian airspace," Lufthansa Cargo said.

US-based United Parcel Service Inc and FedEx Corp, two of the world's largest logistics companies, said they were halting deliveries to Russia.

Global aircraft also lessors said they would have to terminate hundreds of plane leases with Russian carriers in the wake of EU sanctions that call for such contracts to end by March 28.

Since last Thursday - days after Russian recognition of two separatist-held enclaves in eastern Ukraine - Russia's war on Ukraine has been met by an outcry from the international community, with the EU, UK, and the US implementing a range of economic sanctions against Russia.

The US government said on Sunday citizens should consider leaving Russia immediately on commercial flights, citing an increasing number of airlines cancelling flights as countries close their airspace to Russia.

READ MORE: Rouble plunges nearly 30% after SWIFT ban on Russian banks