Russian Oligarchs Fleeing To Israel In Rented Private Jets To Escape Sanctions: Report

As Russian oligarchs, the ultrawealthy businessmen with vast political power, face the heat of Vladimir Putin's Ukraine invasion, reports emerge saying many of them are fleeing secretly to Israel to escape sanctions.

According to the Times Of Israel, an unusual number of rented private jets have been flying from Russia to Israel since the war began. This hints at the efforts by wealthy Russians to escape the harsh sanctions imposed by Western nations to punish their country.

The reports added that at least seven private jets have arrived in Israel from Russia over the past week. The tracking data reportedly showed the flights originated in Turkey and made trips to Moscow and St. Petersburg before flying the passengers to Tel Aviv. The planes were chartered by a company that provides jets for hire in Europe.

Though the identities of the passengers are unclear, the time and manner of the sudden trips have triggered rumors that they are indeed Russian oligarchs. This comes as tax experts predict an exodus of wealthy Jewish immigrants from Russia and Ukraine to Israel.

Meanwhile, the European Commission has prepared a new package of sanctions against Russia and Belarus, which will come as a further blow to oligarchs.

Though Israel hasn't yet imposed any similar sanctions, the country has banned oligarchs Saturday from parking their planes in the country for over a certain period. Local media outlets said the Israel Airports Authority had instructed the staff at Ben Gurion Airport not to approve long-term parking of private jets belonging to U.S.-sanctioned Russians. This means their planes cannot stay in the country for more than 48 hours, which may have prompted many to hire private jets to hide their movements.

Meanwhile, financial experts believe many Jewish oligarchs are likely to use Israel as a potential destination, thanks to the "Milchan Law," which exempts new immigrants from tax on overseas income for at least the next 10 years, according to a Globes report.

The law is reportedly nicknamed after billionaire Arnon Milchan, the first to benefit from the law when it was extended in 2018.

Pinhas Rubin, chairman of the Gornitzky & Co. law firm and one of the architects of the Milchan Law, told the news outlet that in the current situation, the oligarchs will consider settling in Israel. However, the international sanctions will make it difficult to transfer money to Israel.

The sanctions have also forced many Russian oligarchs, including tycoon Oleg Deripaska and Oleg Tinkov, to come out against the invasion of Ukraine as they face huge financial setbacks.