Putin's Strategic Transfer of Airport Stakes: A Bold Move Amidst Western Asset Seizures

Russian President Vladimir Putin has authorized the transfer of Fraport's 25% stake in St Petersburg's Pulkovo Airport to an undisclosed party. This move follows the pattern of seizing Western assets since Russia's invasion of Ukraine. The airport is now under the temporary control of a Russian holding company.

In a significant development, Russian President Vladimir Putin has authorized the transfer of a substantial 25% stake in St Petersburg's Pulkovo Airport, previously held by German airport operator Fraport, to an unidentified party. This decision, revealed in a decree on Friday, aligns with the Kremlin's recent pattern of taking control over Western assets following Russia's invasion of Ukraine in February 2022.

The move highlights Russia's strategic efforts to consolidate assets within its borders. Notably, similar actions have been taken with other Western companies, such as Danish brewer Carlsberg and French yoghurt maker Danone, where Russian management teams have been installed as replacements.

Pulkovo Airport is now under the temporary management of a newly formed Russian holding company. This change, effective from December 2023, shifts control away from previous investors from Germany, Qatar, and various Gulf states. Fraport, in response, had previously noted that its involvement had been put on hold since the onset of the Russian conflict. The company, however, refrained from commenting on the recent decree.

(With inputs from agencies.)