Fraport Exits Russia: Sells Pulkovo Stake, Reduces Net Debt
Fraport AG has exited its Russian operations completely by selling its minority stake in Pulkovo Airport in St. Petersburg. The sale, approved by Russian President Vladimir Putin, is expected to bring a mid-double-digit million euro reduction to Fraport's net financial debt.
Fraport's involvement in Pulkovo Airport began in 2010, with a 30-year concession. However, the company faced public criticism due to the airport's partial use for military purposes in the war against Ukraine. Following Russia's invasion, Fraport suspended operations but initially retained its stake.
In late 2023, a Russian decree stripped foreign shareholders of their voting rights at Pulkovo Airport. This, along with the ongoing conflict, led Fraport to sell its stake to an investor from the Middle East. The deal was part of a structured transaction process, with all approvals successfully completed.
The sale of Fraport's stake in Pulkovo Airport is expected to have a positive financial impact, reducing the company's net debt. Despite the challenges posed by sanctions and the conflict, Fraport was able to select the buyer and complete the transaction. The company has now fully withdrawn from its Russian engagement.
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