President Vladimir Putin has taken another step towards regaining control of key assets in Russia by ordering the transfer of management rights of St. Petersburg’s Pulkovo airport from foreign shareholders to a new Russian entity. This move comes as part of a larger effort by the Kremlin to consolidate power in the country and regain control of strategic assets.
Existing foreign investors, including Fraport AG and the Qatar Investment Authority, will retain their stakes in Pulkovo airport but will lose their voting rights in the new company. This means that while they will still have a financial interest in the airport, they will no longer have a say in its operations or decision-making.
It is important to note that the transfer of rights at Pulkovo airport differs from previous asset seizures by the Kremlin following the invasion of Ukraine. In this case, foreign investors will still retain their ownership stakes, but will be stripped of their voting rights. This is seen as a more calculated move by Russia, allowing foreign investors to maintain some financial interest while exerting greater control over the airport.
This move follows a pattern of Russia taking control of local operations of international holdings in retaliation for sanctions imposed by foreign countries over the war in Ukraine. By targeting strategic assets such as airports, Russia can send a strong message to the international community that it will not be intimidated by sanctions.
Pulkovo airport, which is the second busiest in Russia after Moscow’s Domodedovo, has welcomed the order, stating that it will “restore corporate governance mechanisms.” This suggests that the airport believes this move will help streamline operations and improve overall efficiency.
On the other hand, foreign investors, like Fraport, are evaluating the consequences of this decision. Their future involvement in Pulkovo airport remains uncertain. The Qatar Investment Authority and Mubadala, two other foreign investors, declined to comment on the matter.
In conclusion, President Putin’s order to transfer management rights of Pulkovo airport from foreign shareholders to a new Russian entity is another step towards regaining control of strategic assets in the country. While foreign investors will retain their ownership stakes, they will lose their voting rights, allowing Russia to exert greater control over the airport’s operations. This move is part of a larger pattern of Russia taking control of local operations of international holdings in response to sanctions imposed by foreign countries.
