Shares in Russian flag carrier Aeroflot fell more than 5 per cent after Ukrainian president Volodymyr Zelensky warned international airlines and insurers that flying through Russian airspace was becoming increasingly dangerous because of the scale of Ukrainian drone operations.
Aeroflot shares dropped 5.11 per cent to a session low of 30.36 roubles on the Moscow Exchange at about 8.40pm local time, according to market data cited by Meduza.
The decline followed comments by Zelensky earlier on Tuesday in which he said Ukraine was beginning to “close the sky over Russia”, warning that the increasing presence of drones created growing risks for civilian aviation.
Zelensky stressed that Ukraine was not specifically threatening passenger aircraft, but said airlines and insurers needed to account for the changing security environment when operating in Russian airspace.
The warning introduces a potentially significant new commercial risk for Russian airlines, whose operations could be affected by higher insurance premiums, route restrictions and a deterioration in passenger confidence if drone attacks continue.
Russian President Vladimir Putin responded by accusing Kyiv of making a “bid for state terrorism” and said Moscow would not negotiate with terrorists.
“If this is said aloud, it is a bid for state terrorism. We do not negotiate with terrorists,” Putin said, commenting on Zelenskyy’s statement regarding closing the sky over Russia.
Putin said Russia would find a way to respond to the Ukrainian warning.
He also said Russian forces had been instructed to prepare and launch large-scale attacks against Ukraine’s energy infrastructure.
“They are hitting our facilities; they will get a response,” the Russian leader said.
Zelensky’s warning was made as Kyiv continues to expand its use of long-range drones against targets inside Russia, extending the conflict beyond the battlefield and increasingly affecting transport and energy infrastructure.
The latest comments suggest that aviation could become another front in the economic consequences of the drone war. Russian airlines already operate in an environment shaped by international sanctions and restrictions on access to aircraft, components and western aviation services.
Any sustained deterioration in the perceived safety of Russian airspace could add further costs to carriers, while putting pressure on airports and insurers to reassess operations.
Reports have also suggested that Ukrainian officials earlier this year proposed a much more ambitious campaign against Moscow’s airports.
According to media reports, the plan envisaged attacks involving as many as 1,000 drones a day against airports in Moscow and surrounding areas. The proposed weapons were described as relatively inexpensive autonomous drones capable of identifying and striking targets without continuous operator control.
The reported proposal was subsequently suspended.
Neither the reported plan nor the latest warning by Zelensky amounts to an announcement that Ukraine intends to target civilian aircraft. Kyiv has instead framed its position as a warning to commercial operators about the risks created by the growing number of military drones in Russian airspace.
For investors, however, the market reaction to Aeroflot suggests that the threat is already being reflected in the valuation of Russia’s principal airline.
The drop in Aeroflot’s shares illustrates how the expanding drone campaign is beginning to acquire consequences beyond direct military damage, raising questions over the future cost and viability of civilian aviation in parts of Russia.
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