Russia Completes Re-Privatization of Major Aviation Hub
In a significant development for Russia's aviation sector, Domodedovo International Airport has been re-privatized and sold to a management company affiliated with Sheremetyevo International Airport. The announcement was made by the buyer on Monday, February 9, marking a new chapter for one of the country's largest aviation hubs.
Court-Ordered Nationalization Precedes Sale
This transaction follows a June ruling by a Russian court that ordered the nationalization of Domodedovo, the nation's fourth-busiest airport. The court mandated its transfer to state ownership after determining that the previous owners, Dmitry Kamenshchik and Valery Kogan, were foreign residents and therefore ineligible to manage such a strategic infrastructure asset.
Acquisition Details and Ownership Structure
According to an official press release, Sheremetyevo acquired Domodedovo through its wholly owned subsidiary, Perspektiva LLC, in partnership with Bank PSB PJSC. The statement confirmed that both entities had signed the agreement for the sale of the airport.
The airport was reportedly sold for approximately $850 million on the second attempt, which represents nearly half of the original asking price of $1.6 billion. This substantial discount reflects the complex circumstances surrounding the asset's recent history.
Complex Ownership and Political Connections
Sheremetyevo is majority-owned by private firm TPS Avia Holding alongside the Russian government, which maintains a 30 percent stake according to Russian business outlet RBC. TPS Avia Holding was redomiciled from Cyprus back to Russia in 2022, a move that aligns with broader economic trends in the country.
Russian media have previously identified Arkady Rotenberg, a close associate of President Vladimir Putin, as one of the shareholders in TPS Avia Holding. This connection highlights the intricate relationships between business and political interests in Russia's aviation sector.
Broader Context of Asset Seizures
Since Russia launched its military operation in Ukraine in 2022, the state has seized or nationalized billions of dollars worth of assets. These actions have included properties linked to Western companies such as French dairy group Danone and German energy firm Uniper.
Russian authorities have consistently argued that such measures are lawful and intended to correct flawed privatizations that occurred during the economic transition following the collapse of the Soviet Union in the 1990s. They maintain these actions are necessary for national economic security and sovereignty.
Criticism and Economic Implications
Critics, however, contend that the nationalizations have significantly undermined investor confidence and discouraged long-term foreign investment in the country. The Domodedovo sale represents another example of how strategic assets are being redistributed within Russia's evolving economic landscape.
The transaction demonstrates how Russia is managing critical infrastructure amid international sanctions and economic pressures. The aviation sector continues to be a focal point for both domestic economic strategy and international scrutiny.
