A Swiss-based private jet, previously owned by a company associated with the luxury watchmaker Rolex, has resurfaced in Russia, raising questions about the enforcement of sanctions and the potential for circumvention. The Bombardier Global 6000, with tail number HB-JFX, is now registered with a Russian airline, North West Air Company, according to reports in the Swiss newspaper Tribune de Genève.
The aircraft was used by Rolex from 2017. In 2023, it was sold to a company in the canton of Nidwalden, Switzerland, operating as Swiss Private Jet. On , the jet was removed from the Swiss aircraft registry, ostensibly for export to Oman.
Authorities and Company Maintain Compliance
However, the export to Oman appears to have been a procedural step. On , the Bombardier jet reappeared on flight tracking platforms with its original identification, but also displaying a new Russian transponder code. Flightradar24 data shows the aircraft remains in Muscat, Oman, but is now under the ownership of North West Air Company.
Swiss Private Jet and Swiss federal authorities both insist that the sale was conducted legally. The company’s CEO stated that the transaction was facilitated by a U.S. Agent and a U.S. Bank, both of which provided assurances regarding the legality of the sale. Swiss aviation and customs authorities reportedly oversaw the deal.
The sales contract included a clause explicitly obligating the buyer in Oman to comply with international sanctions, effectively prohibiting further resale to Russia. Swiss Private Jet says it has requested its external partners to report the situation to the Swiss authorities and has initiated its own internal investigation.
Limited Scrutiny from Swiss Regulators
While the State Secretariat for Economic Affairs (SECO) declined to comment on the specifics of the case to Tribune de Genève, the Federal Office of Civil Aviation (Bazl) confirmed the aircraft’s removal from the Swiss registry and its reported export to Oman. However, Bazl stated it did not conduct any additional checks beyond the standard procedures.
Switzerland’s sanctions against Russia extend to the aviation sector and include a “no re-export” clause, prohibiting the resale of goods originating in Switzerland to sanctioned countries. Violations of these sanctions can result in financial penalties, criminal prosecution, and the revocation of licenses, and permits.
The case highlights the challenges in enforcing sanctions regimes, particularly concerning high-value assets like private jets. The use of intermediary countries, such as Oman in this instance, can be employed to obscure the ultimate destination of sanctioned goods. The Swiss government extended sanctions listings on , incorporating measures from the EU’s 18th package of sanctions, adding 14 individuals and 41 entities to the list of those subject to asset freezes and economic restrictions. These measures targeted entities involved in managing shadow fleets, trading Russian crude oil, and supplying Russia’s military-industrial complex.
The EU has also been actively targeting vessels involved in circumventing price caps on Russian oil, with 105 additional vessels from third countries now facing comprehensive bans on purchase, sale, and service provision. The price cap for Russian crude oil was lowered to USD 47.6 per barrel, aligning with EU measures and global market prices.
The Swiss government’s response to this specific case – asserting compliance with regulations despite the jet’s eventual arrival in Russia – is likely to draw scrutiny. The incident underscores the need for heightened vigilance and potentially more rigorous due diligence procedures to prevent sanctioned goods from reaching their intended destinations. The fact that the sale involved U.S. Intermediaries – a bank and an agent – could also prompt further investigation from U.S. Authorities, given the U.S.’s own extensive sanctions regime targeting Russia.
The broader implications extend to the aviation insurance market. Aviation insurers have already faced significant claims related to aircraft stranded in Russia following the invasion of Ukraine. In 2022, DAE wrote off $576.5 million relating to 19 aircraft in Russia. The continued flow of aircraft, even indirectly, to Russia raises questions about the long-term viability of insuring assets operating within or connected to the Russian aviation sector.
The Swiss authorities’ limited scrutiny in this case, as reported, contrasts with the EU’s more proactive approach to sanctions enforcement, including measures targeting circumvention through unmanned aerial vehicles (UAVs) and tighter export controls on 26 new entities, including those in third countries. The incident with the Bombardier jet may prompt a reassessment of Swiss export control procedures and a closer examination of the effectiveness of “no re-export” clauses in sales contracts.
