The reappearance of a Geneva-based business jet in Russia is raising questions about the enforcement of sanctions and the ongoing flow of luxury goods into the country, despite international efforts to restrict access following the invasion of Ukraine. The aircraft, a Bombardier, was observed in Russia, prompting scrutiny of its ownership and operational history.
The situation highlights the complexities of tracking and preventing the circumvention of sanctions, particularly in the realm of high-value assets like private jets. While direct sales of new aircraft to Russian entities have largely ceased, the secondary market continues to present opportunities for sanctioned individuals and companies to acquire these assets.
According to Russian import records obtained by CBC News, at least 34 Canadian-made business jets and commercial aircraft have been imported into Russia since February 2022, when sanctions were imposed. This includes a Bombardier business jet imported by oligarch Igor Kesaev in July 2023, and another arriving in March 2024 via a company majority-owned by Sergey Shishkarev, an ally of Vladimir Putin. These imports demonstrate a continued ability to move aircraft into Russia, even with existing restrictions.
The EU and the UK have closed their airspace to all Russian-owned, registered, or controlled aircraft, a measure intended to limit the operational capabilities of Russian aviation and exert economic pressure. However, the definition of “Russian-owned” and the complexities of aircraft ownership structures – including those involving shell companies and dual citizenship – create loopholes that can be exploited.
The closure of European airspace presents significant challenges for operators. Determining ownership when an aircraft is owned by an individual with dual citizenship, or through a shared ownership or fractional ownership arrangement involving a Russian individual, requires careful legal interpretation. Similarly, identifying the ultimate beneficial owner of an aircraft registered in a non-Russian jurisdiction but owned by a company based in a tax haven like the British Virgin Islands adds to the difficulty.
The conflict in Ukraine has also had a broader impact on the business aviation market. New business jet purchase and financing deals for Russian clients have been put on hold, and existing deals face potential complications. The rising price of oil, which has climbed to levels not seen since 2014, is also a factor, increasing operating costs for jet owners and operators. However, historically, high energy prices have also encouraged investment in private aviation.
While Western companies are generally hesitant to return to the Russian market, despite recent overtures from the Kremlin, the situation regarding aircraft and luxury goods suggests a more nuanced picture. Bloomberg reported in April 2025 that Russian ruler Vladimir Putin instructed officials to develop a legal framework for companies willing to return, but interest remains limited. One expert noted that companies are engaging in “scenario planning” and due diligence, but most will wait for a lasting peace before considering a return. The risk-to-reward equation has shifted dramatically since 2022.
Russia’s Ministry of Finance has reportedly prepared proposals requiring foreign companies to localize production and transfer technologies to improve productivity if they were to re-enter the market. Russian businesses would also be granted a say in allowing foreign companies to enter specific sectors. These conditions reflect Russia’s desire to rebuild its domestic economy and reduce its reliance on Western technology and investment.
The global stock market has seen a rally following a pause in the tariff war between the US and China, but uncertainty remains. This broader economic context is relevant as it influences investment decisions and risk appetite, potentially impacting the willingness of companies to engage with Russia, even if sanctions were to be eased.
The continued flow of Canadian-made aircraft into Russia, as documented by CBC News, raises questions about the effectiveness of existing sanctions enforcement mechanisms. It also highlights the need for greater transparency in aircraft ownership and registration, as well as enhanced international cooperation to prevent the circumvention of sanctions. The situation underscores the challenges of applying economic pressure on a country determined to maintain access to luxury goods and maintain economic activity despite international condemnation.
The European counterproposal to Russia, drafted in Geneva in November 2025, includes a phased re-integration into the global economy as part of a potential peace deal. However, the details of this proposal and its likelihood of acceptance remain unclear. The willingness of Western governments to offer concessions to Russia will likely depend on progress towards a resolution of the conflict in Ukraine and assurances of long-term stability.
