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Aeroflot Grounds Low-Cost Unit Due to EU Sanctions

OAO Aeroflot, Russia’s state-run flag carrier, suspended flights of its low-cost unit due to European Union sanctions imposed in response to the Ukraine crisis.

European companies annulled leasing, servicing and insurance contracts with the unit, OOO Dobrolet, Aeroflot said yesterday in an e-mailed statement. Its destinations had included Simferopol, the regional capital of the Crimean region, which was annexed by Russia in March.