Russia removes control of major airport from foreign shareholders

A presidential decree has transferred responsibility for St. Petersburg’s Pulkovo hub to a domestic entity

President Vladimir Putin signed an order on Thursday transferring all the rights of St. Petersburg’s Pulkovo Airport from foreign shareholders to a new Russian entity.

Under the presidential decree, stakes in the Cyprus-registered company that manages the airport in Russia’s second-largest city will be consolidated in a new domestic public-private partnership.

Existing shareholders, which include a consortium with German airport operator Fraport, the Qatari wealth fund, and Abu Dhabi sovereign fund Mubadala Investment Co., will retain their respective 25% stakes but will lose voting rights in the new entity. 

“100% of shares in the authorized capital of the LLC Air Gates of the Northern Capital (AGNC) owned by Thalita Trading Limited are subject to transfer to the ownership of the company AGNC Holding in the manner and on the terms determined by the government of the Russian Federation,” the decree states.

The decree also provides the stakeholders with the possibility to restore their voting rights “upon their application, subject to the conclusion of corporate agreements with other participants in the company and upon the assumption of obligations to comply with Russian legislation.”

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The decision was made because of the “threat to the national interests and economic security of the Russian Federation resulting from the violation of obligations by certain foreign legal entities,” the order states.

According to the document, the implementation of the decree will not lead to “economic benefits” for the new managing entity and its participants, emphasizing that they do not need to obtain any additional permits or approvals from the Russian authorities.

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