Putin hands over airport to Russian administration

Air traffic - 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 stated in his decree.

In response to an inquiry, Fraport stated that the company would first have to verify the information and examine "what this means for our investment in St. Petersburg, which we have put on hold since the Russian war of aggression, in the future."

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.