Fraport AG, one of the leading companies in international airport management, is close to completing the sale of its stake in Pulkovo Airport (LED) in St. Petersburg. After more than 14 years, this marks the end of the Frankfurt-based company's involvement in Russia. The signing of a share purchase and transfer agreement and the registration of the change of ownership in the Russian commercial register mark the end of this era.
Fraport's involvement began in 2010 with a concession for the operation and development of Pulkovo Airport. This contract, which has a term of 30 years, was an important step in the company's internationalization and part of a strategic expansion into emerging markets. However, the geopolitical developments of recent years and in particular Russia's war against Ukraine led to a drastic reassessment of Russian business.
After the war began in 2022, Fraport ceased all operational activities in St. Petersburg and completely wrote off the investment in the second quarter of 2022. Nevertheless, the search for a buyer took longer than hoped. CEO Dr. Stefan Schulte explained: "Our goal was always to find a solution that is in the best interests of our shareholders. We have succeeded in doing this with the sale."
The buyer and financial aspects of the transaction
Fraport is selling its 25 percent stake in VVSS Holding LLC, the operating company of Pulkovo Airport, to Orbit Aviation LLC. This investor from the Middle East was selected as part of a structured transaction process. All necessary approvals were successfully obtained.
The transaction is expected to have a positive effect on Fraport's net financial debt in the mid-double-digit million euro range. These proceeds provide the company with the opportunity to further strengthen its financial stability and focus on global growth projects.
Strategic realignment
With the completion of this transaction, Fraport is sending a clear signal of its strategic realignment. In the future, the Group will focus more on expanding its global activities, including investments in airports in Greece, Brazil and India. These projects are intended to diversify the international portfolio and place the company on a broader basis.
Pulkovo Airport, which as Russia's fourth largest airport played a key role in the country's aviation, was an important project for Fraport. However, the political framework made continued involvement untenable.
The decision to withdraw from Russia shows Fraport's ability to respond flexibly to geopolitical and economic challenges. At the same time, the Group is sending a signal to the market that it will focus on stable and promising markets.
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