Turkish contractor Ronesans announces exit from Russia after 30 years

MOSCOW. Feb 5 (Interfax) - Turkish construction contractor Ronesans Holding has announced that it has wound down its operations in Russia after 30 years of doing business in the country, where it was one of the top ten contractors in the oil and gas sector.

The group started its business in St. Petersburg in 1993 and subsequently significantly expanded its presence in Russia.

"In Russia, Ronesans divested its construction business in May 2022 and its real estate business in June 2023, redirecting investment and attention to diverse locations worldwide. This transition and the strategic decision to pivot away from direct management in that market has transformed Rönesans' growth strategy. The group's global footprint now extends to various regions, anchored in Turkey and spanning the Netherlands, Germany and CIS countries, with a growing focus on Kazakhstan and Turkmenistan," the group said in a press release.

The Russian legal entities of JSC Ronesans Construction in Moscow and St. Petersburg have been renamed JSC Rencons and Ronesans Heavy Industries has been renamed Rencons Heavy Industries.

Ronesans said it expects to end 2023 with revenue up 10% to 3.3 billion euros and is targeting turnover of 4.5 billion euros in 2024.

Ronesans also plans to take "its first step towards opening to the public" this year with the announcement of an IPO for Ronesans Real Estate Investment. "This IPO will be the first of potentially many others, as momentum grows for Rönesans Group," the press release said.

The group's Russian portfolio included industrial facilities and major mixed-use real estate projects such as Gazprom's Lakhta Center in St. Petersburg and the Federation, Neva Towers and iCity skyscrapers in Moscow.