By David Gold
October 31 – Russia and Singapore will be creating a joint business venture to develop airports being used for the World Cup in 2018.
The project will be to invest in and build up a cluster of airports in the Black Sea region, near Sochi and Krasnodar.
Along with Rostov, they form the southern cluster where some matches during the 2018 World Cup will be held, and will require a significant expansion of air capacity in the coming years to be ready for the tournament.
As well as hosting games in the 2018 World Cup, Sochi is also staging Formula One in the coming years and the 2014 Winter Olympic Games.
Oleg Deripaska, the Russian tycoon, Singapore’s Changi airport and Russian state lender Sberbank announced a joint 50-30-20 per cent division of shares in the venture.
Sberbank will invest $120 million (£75 million/€86 million) whilst Changi are contributing $200 million (£125 million/€143 million) to the project.
Deripaska’s Basic Element Group is investing $500 million (£312 million/€357 million), and are hoping to capitalise on the cluster of airports in the Black Sea region, including in Sochi and Krasnodar.
With total air passenger traffic expected to beat 5 million in 2011, upgrading airport infrastructure is a key part of the region’s regeneration with an exciting decade of sport ahead.
“It is a financial investment for us,” Sberbank chief executive German Gref told reporters.
“We do not manage airports and do not intend to.
“We see great potential for value increase in Krasnodar region airports, especially in view of the upcoming World Cup that Russia will be hosting in 2018, as well as the 2014 Olympic Games in Sochi.”
Andrei Yelinson, deputy general director of the Basic Element Group, added: “We are planning to allocate our current airport assets of Sochi, Krasnodar, Gelendzhik and Anapa as a form of investment in the JV.
“Our stake will come to 50 per cent plus one share, the Sberbank Investment is 20 per cent minus one share and that of Changi Airports is 30 per cent.”
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