Moscow’s Sheremetyevo Airport has come out as the winning bidder for its nationalized rival Domodedovo after the Russian government halved its initial asking price following a failed attempt to auction off the airport, Russian media reported Thursday.
The final price for Domodedovo, Russia’s fourth-busiest airport, was set at 66.1 billion rubles ($880.2 million), down from 132 billion rubles after last week’s auction failed to attract any bidders, the RBC news website reported.
The winning bid was submitted by Perspektiva, a subsidiary of Sheremetyevo International Airport, which was one of two bidders for DME Holding, the company that owns Domodedovo.
Sheremetyevo is controlled by a company linked to Arkady Rotenberg, a close ally of President Vladimir Putin.
Perspektiva outbid Moscow International Airport, a management company affiliated with Vnukovo Airport, RBC reported, citing two sources familiar with the auction.
Under the auction terms, the buyer has five days to sign a sale agreement and 30 days after payment to complete the transfer of ownership. Failure to finalize the deal would void the results and forfeit the 26.45 billion ruble deposit, RBC said.
In June, a court ruled to transfer ownership of Domodedovo to the Russian state after determining that its two owners were foreign residents who did not have the right to manage the airport
Its longtime owner Dmitry Kamenshchik lived in Turkey and the United Arab Emirates in 2022-23, while co-owner Valery Kogan holds Russian and Israeli citizenship.
Kamenshchik reportedly challenged the nationalization in Russia’s Supreme Court on Jan. 23, three days after the initial auction failed.
Andrei Ivanov, a former minister who assumed management of the nationalized airport, said in July that Domodedovo had racked up significant debts due to falling passenger traffic and revenues.
Sheremetyevo estimates the debts at more than 75 billion rubles.
RBC reported that the results of Thursday’s auction are expected to be formally announced on Friday.
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