Russia nationalises St Petersburg Airport; Fraport et al left with shares with no voting rights

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Almost immediately after Russia invaded Ukraine in Feb-2022 Fraport decided to withdraw from active participation in the management of Russia's St Petersburg Pulkovo Airport, which it had been doing as part of the Northern Gateway Consortium since 2010, in what is one of Russia's largest PPP projects and the first in the airport sector.

It did so with the intention of selling its 25% holding in the concession but was prevented from doing so. At one point last year it looked as if it might be able to sell at least to a Russian company but now Fraport and other shareholders have been overtaken by events as Russian President Vladimir Putin has declared effectively a renationalisation by transferring all rights to a Russian held holding company leaving those investors without voting rights and wondering what, if any, compensation they will be offered.

Fortunately there are no other known foreign ventures into airports in Russia to which similar impositions could be applied but it serves to underline the caveat that CAPA - Centre for Aviation has always stressed to airport investors - your money is at risk.

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