Page 97 - RusRPTMay19

9.1.3 Aviation sector news
A $2.5bn expansion of Sheremetyevo Airport, including two more new passenger terminals, a railway, and a new cargo terminal would allow passenger traffic to increase to up to 100mn per year by 2026. To finance this expansion, Sheremetyevo’s shareholders are considering selling 30% of the airport. In a recent interview with Reuters, Sheremetyevo’s chairman of the board, Alexander Ponomarenko said that its shareholders are contemplating a 30% stake sale to raise money for a potential purchase of Russia’s 30.5% holding at a later date. The 30% stake sale could get a higher price and attract more interest from buyers. According to Ponomomarenko, Sheremetyevo’s shareholders have an agreement with Russian authorities on counter-options for the redemption of a 30.5% stake in the state. Russia’s Federal Property Management Agency may submit a redemption package at any time (put- option), and from October-November this year, shareholders will be able to buy the package from the state (call-option). “If we find a buyer for the 30%, then we have the opportunity to realize a call-option,” Ponomarenko explained. Although Ponomarenko did not name any potential buyers, he stated that they could become a strategic or financial investor, presumably a foreign one. A final decision on the sale could be made in 2019. Last fall, Sheremetyevo shareholders postponed the sale of a 10% stake in the airport, which was initially planned for 2017. Ponomarenko explained that it was due to a change in the value of the asset. Sheremetyevo is Russia largest and busiest airport. During January-March 2019 it served 10.7mn passengers, while in 2018 it had a traffic of 45.8mn people.
St Petersburg airport of Pulkovo plans the second stage of reconstruction worth about €500mn, Kommersant daily reported on April 30 citing sources close to the airport's operator Sky Gates of Northern Capital (VVSS). As reported by bne IntelliNews, Russia's largest airport Sheremetyevo is also said to be planning a $2.5bn expansion adding two more passenger terminals, a railway, and a new cargo terminal, which would double the passenger turnover capacity to 100mn people annually by 2026. In 2018 Pulkovo reached its full capacity with passenger turnover of 18mn people. Already in 2019 minor adjustments the throughput is planned to be increased to 23mn people. Pulkovo plans the total new reconstruction drive to be over in 2025-2030. The sources of Kommersant claim that VVSS already managed to recover 50% from the €1.2bn spent on the first stage of the reconstruction, with
97 RUSSIA Country Report May 2019 www.intellinews.com