Putin hands over airport to Russian administration
Russian President Vladimir Putin has ordered a new operator structure for Pulkovo Airport in St. Petersburg, forcing the major German shareholder Fraport out of the business. Fraport had held 25 percent of the previous operating company. Putin justified the move with "unfriendly actions of some foreign states and international organizations", as can be seen from his decree published on Friday night.
After the start of the Russian war of aggression against Ukraine, Western companies withdrew en masse from the market of the giant empire. Many sectors of the Russian economy are subject to Western sanctions as a result of the war. In recent months, Putin has repeatedly ordered forced administrations in order to secure the operation of factories and companies as well as jobs.
The new measures regarding Pulkovo International Airport were taken "in connection with the threat to the national interests and economic security of the Russian Federation", it was reported. Accordingly, 100 percent of the shares of the Northern Capital Gateway (NCG) consortium, which is registered in Cyprus via the company Thalita Trading Ltd, will be transferred to a new holding company established by the Russian government. The Russian shareholders retained their rights, the foreign investors did not.
Fraport had declared its intention to withdraw from the operation of the airport after the start of the war. According to Fraport, the investment in St. Petersburg was "suspended". In September, the head of the Russian bank VTB, Andrey Kostin, declared that the parameters of Fraport's exit should be determined by the end of this year. He had stated the value of the Fraport share at 111 million euros. A total of 13 different companies belonged to the previous holding company NCG, which was awarded a 30-year contract to operate Pulkovo Airport in 2010.
The Air traffic at Pulkovo Airport may be affected by the company's new operator structure, as the conflict between Russia and some foreign states has led to its takeover. The Russian government's decision to assume full control of The Company, causing foreign investors like Fraport to lose their shares, could potentially escalate existing economic tensions due to the ongoing war.
Source: www.dpa.com
