US authorities have obtained a warrant to seize a Russian oligarch’s private plane, valued at over $90 million, for violating US sanctions for Russia’s invasion of Ukraine.
The Airbus A319-100 aircraft, authorities say, is owned by Andrei Skoch, a member of Russia’s State Duma and a billionaire who made his fortune through a stake in a conglomerate in the metals and mining industry. Skoch has been on the US sanctions list since 2018 for Russia’s invasion of Crimea, the eastern region of Ukraine. The plane is believed to be in Kazakhstan, authorities said.
Skoch is the latest Russian oligarch to have one of his luxury assets in the sights of US authorities, who launched a campaign to seize valuable property of those close to the Kremlin in hope of pressing an end to the war.
In June, US authorities announced a judge approved a warrant for the seizure of two of Roman Abramovich’s private plans, valued at more than $400 million. In May, the US took possession of a $300 million super yacht called the Amadea, which is owned by Suleiman Kerimov. And in April, authorities seized at a port in Spain the $90 million yacht Tango belonging to Viktor Vekselberg, a billionaire with close ties to Russian President Vladimir Putin.
On Monday, a federal judge authorized a seizure warrant from a special agent with the US Department of Commerce, Bureau of Industry and Security, which traced the plane to Skoch through a series of shell companies allegedly intended to shield his ownership.
Authorities allege Skoch violated US sanctions by using US dollars to pay the plane’s registration fees to Aruban authorities and pay insurance premiums on the Airbus that passed through US financial institutions. The $113,180 in registration payments and $284,459 in insurance premiums passed through the US banking system without a license to allow payment on sanctioned entities.
The seizure warrant notes that, in addition to the plane, Skoch owns a yacht named the Madame Gu, a helicopter, and a villa at the Four Seasons Hotel in the Seychelles. Those assets are not authorized for seizure. Authorities need to demonstrate that sanctions were violated, such as by money transferring through the US banking system, to seize property.
Prosecutors have creatively used insurance premiums and registration payments to identify assets for seizure since most yachts and plans can’t operate unless they are insured. Since the US, UK and the European Union announced broad sanctions against Russian elites, several insurance companies stopped doing business with sanctioned individuals.
A year after a wildfire destroyed the western Canadian village of Lytton, residents, municipal leaders and the provincial government are grappling with the slow and costly reality of future-proofing a community against climate change.
Key points:
In 2021, 90 per cent of buildings in Lytton, British Columbia, were destroyed by a wildfire
Lytton’s council wants better building emissions standards and energy efficiency to be prioritized in the town’s reconstruction
However, residents are running out of time as temporary living allowances from insurers near their end
The remote village sits at the confluence of the Fraser and Thompson rivers in the high, dry mountains of interior British Columbia, making it a bullseye for fires and landslides. In June 2021, 90 per cent of Lytton’s structures burned down, a day after the village recorded Canada’s hottest-ever temperature.
Now officials have a unique opportunity to rebuild an entire community from scratch using fire-safe materials and energy-efficient building standards.
However, long-term disaster mitigation plans and net-zero ambitions are running up against the realities of human impatience and reimbursement limits from insurers. Burnt-out residents — many still living in temporary accommodation — want to rebuild their homes and get on with their lives.
“There’s a distinct difference between what would be ideal and what’s realistic,” said Tricia Thorpe, 61, who lost her home in the fire.
Tricia Thorpe and her husband, Don Glasgow, stand outside their new home.(Reuters: Jennifer Gauthier)
“I don’t think anybody has a problem with building fire-smart, but they’re trying to build a model village. They’re talking about solar [panel] sidewalks.”
The risk of destructive weather is rising as climate change intensifies, sharpening the focus on how communities build.
Insured damage for severe weather events across Canada hit $C2.1 billion ($2.34 billion) last year, according to the Insurance Bureau of Canada, including $C102 million for the Lytton fire.
Since 1983, Canadian insurers have averaged about $C934 million a year in severe weather-related losses.
The wrangling over how to restore Lytton highlights the messy reality of climate adaptation, and what costs and delays people are willing to endure to cut carbon emissions and mitigate their fire risk.
In the 300-person village, some lofty ambitions have already been shelved in favor of a faster rebuild.
Lytton’s council wanted to adopt building by-laws that require net-zero-emissions homes, but scaled that back to lower energy-efficiency standards after residents pushed back.
The village also considered burying all its power lines to reduce fire risk, a three-year process, but is now installing temporary overhead lines to get the job done in nine months.
Tricia Thorpe’s home, north of Lytton. The village sits in the high, dry mountains of interior British Columbia, making it a bullseye for fires and landslides.(Reuters: Jennifer Gauthier)
“At times, I get frustrated with the lack of knowledge and the fact that residents think we’re trying to make it impossible for them to rebuild,” Lytton Mayor Jan Polderman said.
“We could become a first-generation model for net-zero.”
Mr Polderman said the solar panel sidewalks — reinforced solar panels in place of pavements on the town’s sidewalks — and wind energy could power street lights and municipal buildings.
breaking new ground
In the 13 months since the fire, little progress has been made on restoration, with only a quarter of properties cleared of ash and debris.
The local council is still finalizing fire-safety building by-laws it says will be the most comprehensive ever developed in Canada and make Lytton the best-protected community in the country.
Those new by-laws — based on expertise from Canada’s National Research Council on developing communities in wildfire-prone regions — cover everything from building materials to landscaping and maintenance to what can be stored on properties.
The remains of homes and businesses a year after a wildfire destroyed 90 per cent of the buildings in Lytton.(Reuters: Jennifer Gauthier)
Finalizing the by-laws and community consultation has taken months.
“I’m sure if we’d just said, ‘Let’s get people back in their homes ASAP’ it would have been faster, but then we might be in the same situation in a few years’ time,” said Kelsey Winter, the chair of the BC FireSmart Committee, a provincial organization leading community engagement in Lytton.
“It’s taking longer than many people wanted, but Lytton is breaking new ground.”
Other complications have dogged the recovery. Record-breaking floods in November washed out local highways, which were also intermittently closed over the winter for avalanche control.
In addition, the village sits within the Nlaka’pamux First Nation territory and residents require archaeological surveys to check for Indigenous artifacts before rebuilding. The Lytton First Nation, part of the Nlaka’pamux, also lost dozens of homes in the 2021 fire.
The limits of insurance
Around 60 per cent of Lytton residents were uninsured or under-insured, leading to delays in debris removal as residents and insurers grappled with who should pay. In March, the province said it would provide $C18.4 million to cover debris removal, archaeological surveys and soil remediation.
Meanwhile, residents are running out of time as the temporary living allowances provided by insurers, typically for 18 to 24 months after a disaster, near their end. Adding to their challenges, insurers are reluctant to pay for the upgrades to homes that are being written into new building by-laws.
“Insurance puts back the building you had, not the building you want,” said Aaron Sutherland, the Insurance Bureau of Canada’s Pacific region vice-president.
Canada’s Institute of Catastrophic Loss Reduction — which helped develop Lytton’s fire-safety by-laws — estimates implementing them would add approximately $C5,000 to each home’s rebuilding costs.
And, Mr Sutherland said, while insurers can see the benefit of fire resilience, upgrades to enhance energy efficiency and cut carbon emissions will add “tens of thousands” of dollars per home.
“When people took out insurance policies, they were based on the by-laws of the day and what insurers were expecting to pay,” he added.
Building emissions account for 13 per cent of Canada’s total greenhouse gas output, and slashing them is a key part of the Canadian government’s climate targets.
Canada’s federal government will help make up some of the shortfall, providing $C6 million in grants for home owners in Lytton with basic rebuild insurance who want to rebuild net-zero or fire-resistant homes.
Meanwhile, Lytton is facing yet another wildfire season. On July 14, a wildfire broke out across the river from Lytton, destroying at least six properties.
A firefighting helicopter flies over the nearby Nohomin Creek wildfire on July 25, 2022.(Reuters: Jennifer Gauthier)
Last year, 1,642 wildfires burned 869,279 hectares in British Columbia, higher than the 2010-2020 average of 1,352 fires and 348,917 burned hectares.
Some homeowners have had enough of delays.
Ms Thorpe, who lives just outside the village boundary, is rebuilding without building permits, and others are moving elsewhere.
“I’m not expecting I’ll be rebuilding ever, even though my intention was to do so,” said retired nurse Michele Feist, 59, whose 100-year-old bright yellow home burned down.
“The response has been inadequate at every level. I’m not a bitter person and I try to be realistic about things, but I miss my town.”
Sick or injured Australians may have to pay more in up-front costs at hospitals as patients become a bargaining chip in negotiations between two multi-billion-dollar medical firms.
Key points:
Bupa and Ramsay Health Care’s dispute could affect 3.9 million Australians
Bupa customers will likely face higher up-front costs at Ramsay facilities after October 2
The talks broke down after the two multi-billion-dollar giants failed to agree on a cost increase
Hospital giant Ramsay Health Care formally ended its long-standing deal with private health insurer Bupa and its 3.9 million members on August 2 when the pair failed to agree on hospital costs for patients.
There is now a 60-day window, which expires on October 2, before Bupa customers have to pay more at Ramsay’s 72 private hospitals across the country.
‘I feel sorry for anyone else’
Bupa customer Liz Havriluk from Coolum on Queensland’s Sunshine Coast said she felt lucky her surgery would still be covered.
She just made the company’s deadline for her nasal surgery next month at Sunshine Coast University Private Hospital.
Bupa customers will likely pay more if they try to be treated at certain hospitals.(ABC News: Nic MacBean)
Ms Havriluk said she felt for others who would be left with mounting hospital costs.
“Ramsay hospitals are just about all we have up here, so I feel sorry for anyone else,” she said.
Ramsay Health Care has four of the five major private facilities on the Sunshine Coast, including Noosa Hospital, Caloundra Private Clinic, Selangor Private Hospital at Nambour and Sunshine Coast University Private Hospital.
Ms Havriluk has been a member of Bupa health insurance for 22 years and her partner since 1953.
The pair pay $195 a fortnight for their cover.
Ramsay Health owns Sunshine Coast University Private Hospital.(Supplied)
GP says patients sold ‘false promise’
Sunshine Coast Local Medical Association president Roger Faint said he was already having to comfort and advise patients in similar situations to Ms Havriluk, who were feeling lost because of the stalemate between the two giant health companies.
Roger Faint says patients face uncertainty in the wake of the dispute.(Supplied: Roger Faint)
Dr Faint said they could need to look further afield.
“It puts them in a difficult financial situation — where there was a certainty there’s now uncertainty,” Dr Faint said.
He said older people would be affected by the fallout.
“These people don’t want to travel to Brisbane, or they can’t travel to Brisbane because transport is difficult and they may or may not have family,” he said.
Bupa customers with treatment booked at Ramsay Health Care facilities may have to pay more.(ABC Gold Coast: Steve Keen)
Dr Faint said patients might not realize they were affected until they became sick or injured.
“And they’ve paid their premiums which are thousands of dollars a year, in some cases for a very long time, then they can’t get the service they thought they were paying for,” he said.
“It’s almost been like a false promise as well, isn’t it?”
Hospital spat will ‘ring alarm bells’
Australia Medical Association president Steve Robson said the dispute would make people question why they should bother with private health cover.
“I think people around the country who have private health insurance are looking at this with some trepidation and saying, ‘Why are we in a situation where our health fund and our hospital can’t agree on things,'” Professor Robson said.
Steve Robson says customers will be left questioning why they bother with health insurance.(ABC News: Dave Sciasci)
He said hospitals were under pressure with staff shortages and supply issues while insurers spent less because so many surgeries were cancelled.
“I would think there’d be an enormous pressure on Bupa to actually do the right thing by the people who paid them so much money, and for them to have the care that they need,” he said.
“And I think it’s going to ring alarm bells around the country if it’s not resolved quickly.”
In statements, Ramsay Health Care said Bupa’s offer was below inflation and did not cover the increases in its costs.
Bupa said it would not accept a deal that would significantly push up premiums for its members.
Bupa said it would continue to pay some of the costs for care, even at Ramsay, but that the hospital may decide to charge more without a deal in place.
On Friday, Bupa competitor HCF confirmed it had made a five-year deal with Ramsay that “recognizes the increased costs hospitals are facing.”
Ms Havriluk said she was still facing out-of-pocket costs of $2,500 for her September surgery to address her sleep apnea, despite having gold-class membership.
“Bupa only covers only 85 per cent of the very first nasal procedure and then the other side I get 50 per cent, then 25 per cent for a third surgery,” she said.
“When you think about all the money you’ve spent, it’s pretty lousy.”
The owner of flood-ravaged properties south-west of Brisbane says he remains in an “awkward position” as he waits to hear whether his houses will be bought back by the government.
Flood-affected home owners in eastern parts of Goodna are being given “initial priority” for voluntary home buy-backs, with 31 owners having confirmed their interest so far.
More than five months after the February flood disaster, authorities say 4,259 people across the state have registered their interest to have their homes raised, rebuilt or voluntarily bought back under the $741 million Resilient Homes Fund.
It includes 443 home owners for voluntary buy-back, with 70 per cent of them living in Ipswich and Brisbane.
Eighteen home owners have been identified in the first tranche of the Brisbane buy-back scheme.
The state government said Goodna east has been given “initial priority” because of the extent of the disaster impact and flood risk, with valuations in Ipswich to start in mid-August.
Enid Street in Goodna was devastated by flooding in February and March.(Supplied)
Resident Johann Koorts applied to be part of the buy-back scheme for the two homes he and his wife own on Enid Street today.
“We are not fixing it. We have no money to fix it,” he said.
“We could have started a month after the floods if we [had] confirmation from the government on what they were going to do.
“I’m not sure if I should be doing anything [to the house]because it is not used — the other people in the neighborhood advise, ‘You’re wasting your time and your money if you fix it’.
“It is a very awkward position to be in now.”
‘We are not going to rush’
Brendan Moon, the chief executive officer of the Queensland Reconstruction Authority, said the buy-back scheme was a voluntary process and would take time.
“It relies on an independent valuation of the property to take place and that home owner agreeing to valuation of that property before they sell their house,” he said.
“This is a big decision for people so we are not going to rush this.”
Of the more than 8,000 properties impacted in the southern Queensland flooding, approximately two-thirds have either been repaired or works were underway, Mr Moon said.
Another 2,000 properties are still uninhabitable at this point in time.
“This will be a long road,” Mr Moon said.
Queen Street in Goodna flooded severely in February.(ABC NewsAlice Pavlovic)
A key driver for work to begin was the progress of the home surveys, which tells authorities “where floodwaters have been and where they may go into the future”, he said.
“Right now we have over 3,000 underway surveys.
“This tells us the best option for those particular home owners … and will drive the outcome for those home owners.”
He said home owners should not wait for funds to be available to conduct repairs.
There are still about 600 home owners who were unsure of their next steps and “our approach now is very much supporting them getting them to the right decision.”
Asked about wider construction challenges and material shortages, Mr Moon said “these are considerations we’ve taken into account in the design of this program”.
“I think when we start to get an understanding of what the scope of works and costs associated with those works look like, I think we’ll be in a better position to make a call on those,” he said.
‘Gap’ in creek system knowledge
It comes as State Recovery Coordinator Major General Jake Ellwood delivered his report into the south-east Queensland floods detailing the recovery plan going forward.
Major General Jake Ellwood says there was a “gap” in knowledge about south-east Queensland’s creek systems.(ABC News: Scott Kyle)
He said from visiting different communities it was clear to him “there was a feeling that there could have been more warning”.
“In some areas they felt there were gauges required, in other areas they felt the gauges might be older,” he said.
“The thing is, we have an opportunity now with technology to actually improve what we have so that we get a better picture.
“There’s also a lot of great work going on with flood mapping that I think is very important so people understand their risk and making sure that is available to everyone.”
The report stated there was a “gap” in knowledge in Queensland around the understanding of creek systems and their impact on catchment flooding and that the QRA was investigating issues and opportunities relating to flood warning infrastructure in creek system.
The Office of the Inspector General of Emergency Management is yet to hand down its review into the flooding event.
