Germany's Fraport unable to sell Pulkovo stake until 2025, estimates it at 111 mln euros - CEO

MOSCOW. May 17 (Interfax) - German airport holding company Fraport will not be able to sell its 25% stake in the management company of St. Petersburg airport Pulkovo at least until 2025, according to an address by Fraport CEO Stefan Schulte to shareholders, published on the company's website.

After the start of Russia's military operation in Ukraine, Fraport announced its intention to withdraw from Northern Capital Gateway LLC (VVSS, operator of Pulkovo). The company reported that it was mulling over an exit option, while specifying that the concession contract precluded the sale of the stake.

"Fraport will of course do everything in its power to retrieve its assets there and avoid losses to the greatest possible extent. At the same time, we fully support and respect the currently applicable and increasingly severe sanctions. However, due to contractual restrictions it will not be possible for us to sell our share before 2025," Schulte says in the address prepared for the company's upcoming AGM.

The stake is currently worth about 111 million euros, after its value was adjusted by 48 million euros in Q1.

Schulte also commented on "speculation about Russian military aircraft taking off from Pulkovo."

"Neither Fraport as a minority shareholder nor any of the other shareholders have any influence on the types of flight movements that take place at the airport in St. Petersburg. We have no knowledge of any armed military aircraft being deployed via Pulkovo" for the operation in Ukraine," he said. "However, we cannot rule out government flights are operating from there," Schulte said.

The group's is expected to receive 3 billion euros of revenue and between about 50 million and 150 million euros in net profit in 2022, which will depend no Russia's further actions.

Pulkovo is one of the largest airports in Russia. The base carrier is the Rossiya airline. VTB holds a 25.01% stake in the company, with another 25% each held by Fraport, an investment fund from Qatar and a consortium of investors including the RDIF, Mubadala and Baring Vostok.