Allison Lampert

(Reuters] – A rare find in the hot marketplace for used corporate aircraft was this elegant, European-model jet.

Amanda Applegate, an aviation attorney, found out that the aircraft was Russian-owned and was registered in Russia.

It was an issue that brokered the deal for the buyer. Applegate is a partner in Soar Aviation Law (USA), and said it happened because the West has imposed severe sanctions following Russia’s invasion.

Private jet owners are on alert in order to not do business with Russia. This is at a moment when a Twitter account @RUOligarchJets (NYSE:) run by a Florida teenager has drawn attention to the fugitive luxury aircrafts of the super-rich.

According to an anonymous executive of a business jet manufacturer who spoke only on condition that he remain anonymous, compliance is “like a taco wrapped in a burrito wrapped in a tortilla, wrapped with a chalupa.”

WINGX Consulting, a European data and research company claims that there are just 100 Russian business jets registered on the Russia Register. In reality, about 400 commercial aircraft flown from Russia every year. It raises doubts over Russian control.

Richard Koe (WINGX managing director) stated that “a significant proportion” of 400 were owned by Russian-based people or entities.

According to the executive, planemakers have been distributing questionnaires to be more certain that parts being shipped to Russia from repair centers aren’t accidentally supporting jets under sanctions.

This is not an easy task in ultra-private corporate aviation.

Russian-owned business jets most often are registered out of country, with ownership hidden behind shell trusts or companies.

According to Jefferies analysts, around 5% of European business jets have Russian registrations. However, Russians might own up to three-quarters of the registered aircrafts. Analysts say.

VETTING EXPORTS

Germany’s Lufthansa Technik has established a taskforce and developed an export approval process in order to avoid sanctions banning technical support, as well as parts shipments to Russia.

According to a spokesperson, “This will increase the complexity of our global supply chain processes,”

It is important for planemakers to ensure that parts shipped to maintenance centers don’t end up in the hands of sanctioned persons or entities.

It’s no problem for orders for parts that are specific to a particular aircraft identified by the serial number. Sometimes, however, the maintenance center could place an order without specifying a particular jet.

“I expect that the (manufacturers) and other suppliers will start to ask more questions so that they can vet the end-users for parts exports to certain countries,” said aviation lawyer Jonathan Epstein, partner at U.S.-based Holland & Knight.

According to brokers and analysts, Canada’s Bombardier and General Dynamics Corp (NYSE) are the largest suppliers of Russian jets.

Bombardier said it has cut all ties to Russia.

The Canadian planemaker stated in a bulletin to customers that it had suspended accounts for some customers, even though these aren’t directly affected by the sanctions. It also said that they wouldn’t supply parts or support anyone located in any country if the aircraft is used in Russia.

Gulfstream didn’t respond to our request for comment.

This is equally problematic for the buyers. Many are trying to avoid all Russian-owned aircraft, including those owned by sanctioned owners, just like Applegate.

William Quinn of the U.S. consultancy firm Aviation Management Systems said that he expected to see more European business jet deals come under scrutiny.

A deal was made for an old Pilatus plane registered in Guernsey. Quinn explained that this deal also fell apart when Quinn learned the Russian owner of the plane.

Clients were advised by a broker to avoid any deals with Russians. They fear more people will be added on blacklists and that they could cause concern for lenders. According to the Kremlin, anti-Russian sentiments should be resisted in the West.

A broker said that there is real concern about the “list” not being well-researched and would continue to grow. There is a greater risk that you will get caught up than simply moving in another direction.