Russia's Transport Ministry has banned Bermuda registered aircraft built before 1993 from operating in Russia.

Currently 60 percent of the aircraft registered in Bermuda operate in Russia, according to the Director of Civil Aviation Thomas Dunstan.

The ban has been put in place for all foreign registered aircraft, built 15 or more years ago, wanting to operate in Russia.

It will only impact aircraft attempting to be registered overseas — not planes and jets already registered and operating.

Mr. Dunstan said the ban was a different take on similar legislation in Bermuda and elsewhere.

"We have an aged aircraft programme in place for all aircraft older than 14 years," he said. "These aircraft undergo more scrutiny and maintenance. Our programme is similar to what the US Federal Aviation Association has in place.

"Russia has decided not to adopt that programme, but instead they have decided to just ban all foreign-registered aircraft older than 15 years."

Contrary to a report in a Russian newspaper, Mr. Dunstan said no aircraft were grounded in Bermuda as a result of the law change.

Of the 360 planes registered in Bermuda approximately 220 operate in Russia.

"The reasons for this are many," Mr. Dunstan said. "Many of them are financed by the US and they don't want them registered in Russia because they feel it is easier for them to retrieve their asset, if something goes array with the transaction, if it is registered here.

"Another reason is that registration is a long process and can take anywhere from three months to a year. It is easier for them to register it here than in the US because our registry is not as big and the wait is not as long.

"And the reason they buy older planes is they have to pay a hefty duty on any foreign built aircraft, so the older the plane the less the tax."

Mr. Dunstan explained that many of the small airlines who register aircraft here buy older planes for the first few years of operation while they build their company and then trade up to newer models.

He added that he does not believe it will mean a loss of revenue for Bermuda because companies will now buy newer aircraft to register here.

However, it could cost companies that were currently in the process of registering old aircraft a fair chunk of change as they will no longer be able to do so and must sell off the planes before purchasing newer ones.

"Many of them were planning to expand their operations with these aircraft," Mr. Dunstan said. "They will now have to figure something else out."

Russia's daily online news website Kommersant said airlines had not been warned about the new law.