Partial military mobilization in Russia has resulted in a significant increase in prices for business flights on both domestic and foreign routes from the country, according to business aviation brokers and media reports.

According to market participants, in recent weeks business aviation traffic in Russia has increased sharply with the biggest demand being observed on foreign routes. The most popular foreign destinations for Russian business flights are Yerevan and Istanbul, as well as Minsk, Baku, and Dubai.

The average number of people using business aviation in Russia is estimated at 5,000 including their families. The start of the war in Ukraine in February has resulted in a sharp decline in the Russian business aviation fleet and major growth of prices for business flights in the country. While there were some signs of stabilization in the summer, military mobilization in Russia has resulted in a new wave of turbulence in the market for Russian business flights.

Still, analysts noted, the market artificially prevents a further decline in the shortage of business jets, which is offset by higher prices on existing business flights. As of now, prices on business flights are two to three times higher than a year ago, and prices continue to rise. Among the most popular business jets in the Russian fleet are Cessna Citations and Embraer Legacy 600/650s.

Most analysts also expect slowing investment in the Russian business aviation sector, which may result in the suspension of many investment projects. Probably the largest of such projects is the construction of a large-scale business aviation terminal in the city of Gelendzhik. The volume of investments in the project is estimated at about RUB 2 billion (U.S. $3.2 million). Investors in the project were expected to include the Russian VTB bank and billionaire Teymyraz Bolloev.