Russian HNWIs Mull Switch To Domestically-made Bizjets

 - May 21, 2022, 3:47 PM

High-net-worth individuals and sanctioned oligarchs in Russia are considering purchasing preowned domestically-manufactured Tupolev Tu-214s and Tu-204s to replace their foreign-made business jets grounded by Western sanctions on Russian-owned aircraft due to the Ukraine war. The narrowbody airliners would be outfitted with VIP interiors for this purpose.

So far, representatives of Rostec have confirmed interest by some Russian businessmen in a total of at least seven such aircraft. Russia’s Rostec state corporation controls all aircraft manufacturing companies in the country. According to Sergey Turkin, head of Ilyushin Finance, Rostec’s leasing company, these aircraft models range in age from 12 to 16 years, and including VIP completions, could cost up to $46 million each. 

Another option could be the Aurus jet, the VIP version of the domestically-produced Sukhoi Superjet. A new-production Aurus runs up to $70 million. However, due to sanctions and the high share of foreign components and parts, the production and servicing of this aircraft might be difficult.