The German company Fraport, one of the largest airport operators in Europe, has announced it received 45 million euros from the sale of its business operations in Russia. This information was disclosed by Fraport on March 18, 2025. The company had been part of the consortium managing Pulkovo Airport in St. Petersburg since 2009.
Looking back, the share sale occurred back in December 2024, with Fraport terminating its involvement at Pulkovo Airport. "В декабре 2024 года доля была продана за 45 млн евро (…) Продав долю, Fraport прекратила свое участие в аэропорту Пулково," stated Fraport, underlining the closure of its operations at one of Russia's key international air hubs.
The sale comprised Fraport's share of the ООО Holding VVC, the parent company managing the Pulkovo Airport operations. This share was sold to Omani investor Orbit Aviation LLC. The details of this transition arise as the international community navigates complex geopolitical landscapes.
Fraport's head, Stefan Schulte, had earlier noted the challenges faced by the company under the existing legal framework. Back in May 2022, Schulte mentioned, "в соответствии с условиями концессионного договора у холдинга нет возможности выйти из состава акционеров до 2025 года," highlighting the binding nature of their concession agreement. This agreement had initially restricted the holding’s exits until 2025.
At the time of his statement, the value of Fraport's shareholdings was estimated at 111 million euros, reflecting the challenges presented by managing foreign business investments during turbulent times.
Adding another layer of complexity, the Russian government implemented mandatory regulations for foreign firms seeking to sell their Russian operations. Initially, these regulations permitted companies to retain only 35% of the market value of their assets. This retention amount has recently diminished to merely 5%, presenting considerable financial setbacks.
Notably, this shift came around the same time when Russian President Vladimir Putin signed a decree in October 2024, officially allowing Fraport to exit from the Russian market. Such regulatory changes indicate the Russian government's attempts to reshape its business regulatory environment for foreign investors.
The sale by Fraport raises questions about the future of foreign investment and management of international airports within Russia, as geopolitical tensions continue to evolve. It also marks Fraport's strategic shift away from the Russian market, influenced not just by the financial aspects but also the broader geopolitical climate.
Despite the financial challenges, Fraport remains committed to its operations. The company operates Frankfurt Airport and has interests globally, managing several other airports outside of Russia. This move aligns with their goal of maintaining operational efficiencies and exploring more stable markets.
With shifting regulations and market dynamics, Fraport's exit from Russia is not just about business losses; it's indicative of larger trends affecting foreign companies within the country. This scenario is yet another reminder of the volatility faced by investors and operators, particularly as countries like Russia revise their regulatory environments amid changing international relations.
Fraport's recent announcement signals significant changes, serving as both financial relief and strategic pivot as it navigates new international landscapes and opportunities elsewhere.