Before the Russian Special Operations (invasion) of Ukraine in February 2022, Europe was a playground for Moscow’s superwealthy. With plenty of money around, there are plenty of private planes too, enough to put Russia in 11th place worldwide for the most business jet departures in 2022. As reported by Forbes, WingX data showed 3,860 private flights out of Russia last year, just ahead of the Bahamas at 3,791 and trailing Italy with 4,497.
Top of the list of destinations to fly these private jets to were places in Europe. An interesting analysis by the New York Times shows France, Switzerland, the UK, and Germany to be some of the most well-trafficked routes. But that was before everything changed.
Following the invasion, the West retaliated against Russia, imposing sanctions together with seizing assets of Russian oligarchs linked to the Kremlin. This included forcing Roman Abramovich to sell Chelsea, a European football (soccer) club he had owned for 19 years, and seizing two of his private jets.
Russians began moving their assets out of Europe
Fearful of losing their expensive toys, other wealthy Russians began transporting their super yachts and business jets to countries where they could not be seized. With restrictions curtailing where Russian-owned private jets could fly, some innovative Russian oligarchs have found a way to circumnavigate the rules.
Photo: Jetex
If the European Union does not sanction them personally, they can enter. They cannot, however, arrive from Russia or be in a Russian-registered aircraft. In that case, wealthy Russians can fly to a third country and then charter a locally registered private jet to fly to Europe. Two examples of countries facilitating Russians are Turkey and the United Arab Emirates (UAE). According to euronews, quoting a reliable source, Russians arriving on chartered private jets via a third country is a weekly occurrence.
The New York Times report goes on to show that flights to other places have picked up significantly since sanctions began. The UAE, already a fairly popular destination, went from just over 4% of all private jet flights to 6.1% last year. Turkey had barely 1% pre-sanctions, but is now the endpoint for 3.6% of flights, while Azerbaijan had barely any flights at all, and now accounts for 2.3%.
The UAE, Turkey, and the Maldives are top destinations
Unlike the 27-country European Union, the UAE has not adopted Western sanctions placed on Russia despite pressure from the United States to distance itself from Moscow. In 2021, Russia showed off its single-engine Sukhoi Su-75 Checkmate stealth fighter jet at the last Dubai Airshow. This year, Russian arms makers are at the show but are lying low, displaying their wares in a covered pavilion separated from the main exhibition area.
Other Russians who have moved to Dubai since the invasion are more open, with some of the wealthy prepared to pay $15,000 monthly rent for a three-bedroom apartment overlooking the sea. However, the real estate market has now cooled, with media company Bloomberg putting it down to the ruble, which lost a third of its value against the dollar.
Photo: Gulfstream
According to Flightradar24, several Russian oligarchs’ private jets are frequent visitors at Al Maktoum International Airport (DWC). A Gulfstream G650 belonging to nickel magnate Vladimir Potanin was seen there on November 6 after arriving from Velana International Airport (MLE) in the Maldives. The Indian Ocean group of islands is another popular destination for Russia’s super-rich because they do not have an extradition treaty with the United States.
A Bombardier Global 6000 belonging to Vladimir Putin’s friend Arkady Rotenberg was spotted in Dubai on November 10 but is now at Vnukovo International Airport (VKO) in Moscow.
Multinational companies have relocated employees to Dubai
Since the invasion, the tax-free resident city of Dubai has become home to several wealthy Russians looking to run their global businesses more easily. When speaking about the attraction of Dubai to wealthy Russians with the New York Times, Daria Poligaeva, a Russian journalist living in Dubai, said:
“Lots of people don’t have a choice. It’s one of the few places where you can now transfer your business, where there’s a market, where you can develop your business, and where you still have a market of international corporations.”
Photo: SFIO CRACHO | Shutterstock
Even Western multinational companies like Google and financial powerhouse Goldman Sachs have relocated their Moscow employees to the Gulf State. Until the war in Ukraine ends and the world lifts sanctions, wealthy Russians will be forced to keep their private jets in countries where they cannot be seized.