2 Sep 2022 18:46

Tax free operator Global Blue withdraws from Russian business

MOSCOW. Sept 2 (Interfax) - Switzerland's Global Blue, one of the world's largest tax free system operators, has withdrawn from its Russian JV, transferring its share to a partner.

Numerous sanctions imposed against Russia, as well as restrictions imposed by Russia itself and the risk of further sanctions could significantly limit Global Blue's business in the country. Therefore, on July 11 Global Blue sold its stake (51%) in the Russian joint venture to a partner.

The deal includes an option to repurchase the stake within a certain period of time, the company said in its quarterly report.

Global Blue said in its fiscal year 2021-2022 report (ended in March) that it was considering selling its stake in the Russian JV. The ongoing conflict between Russia and Ukraine and the sanctions imposed against Russia have led to restrictions on flights to Russia from a number of countries, the shutdown of the Visa and Mastercard international payment systems, as well as restrictions on the supply of luxury goods to the country. This affected not only the availability of goods in Russian stores, but also sales to Russian residents in stores in Europe, the company noted.