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Domodedovo has a Problem
May 3, 2011 14:45

Russian authorities are criticizing the owners of Domodedovo airport. The Prosecutor's office claims that the ownership structures at Domodedovo airport may affect the security of the state. The accusations can destroy the company's plans to appear at the exchange as well as to push the airport to join the alliance with Sheremetyevo and Vnukovo state's airports.

In February, 2011, the President asked the Prosecutor General's for a report on Domodedovo owners. The President noted, that all commercial structures should not hide themselves and not to run from any responsibility. The situation in Domodedovo have been also marked by some other government representatives. Sergei Mironov, head of the Federation Council, has proposed to nationalize the airport. Alexander Bastrykin, head of Investigative Committee, noted that nobody knows who is the owner of Domodedovo.

Russian authorities started to criticize the airport after terrorist attack, which killed 37 people. Earlier, the authorities payed attention to delays in December, 2010.

Russian resource doubts that the President doesn't know the owner of the largest airport of the country. According to the resource, it seems like the head of the head of the state demonstrates displeasure to the shareholders. In April the Prosecutor General stated that the ownership structure of the joint-stock company is able to hide the real owners. In particular, the agency noted, that Domodedovo is controlled by foreign companies.

The Prosecutor's office says, that this scheme is to hide the real owners and those persons who make decisions, this protects them and brings them out of the jurisdiction of the Russian Federation, preventing the executive authorities of Russia to control and monitor the company. The Prosecutor's office believes, that this situation is unacceptable. In addition, the Prosecutors did not stop. According to the order of the Prosecutor's office, the Tax service started to check the airport. Also the Prosecutors offered to the Ministry of Transport to ban the participation of foreign companies in the managing of strategic transport enterprises, as well as to change the rules of airports certification.

Domodedovo's press-service responded immediately, saying that the ownership structure of the airport complies with the Russian legislation.

On Domodedovo's web-site there is no information about the owners of the airport. According to the BBC News, since 1991 the airport owners have been changing for 13 times. Nevertheless, it is known, that the company is managed by East Line group, which owns the airport through foreign companies.

At this moment the owners of Domodedovo do not want to give the company to the state. Russia's largest aiport is trying to bring out about a billion dollars during the upcoming shares placement.

According to the Russia Profile, the company took steps to sell 20-25 percent of its stock for $1 billion in a private offering. The resource says, that "the owners had hoped that by selling their shares to foreign investors, they could protect their business from possible nationalization".

"The owners held a road show for a limited number of funds, which will have the right to buy the airport's shares. In its presentation to the funds, the airport disclosed for the first time its financial indicators, demonstrating an unexpectedly high net profit margin of 60 percent for an industry with a market average level of 15 percent", says Russia Profile.

The problems with the Prosecutors may spoil the company's plans. The investors will not buy shares if they do not understand the structure of the company and how it is managed, says Lenta. ru. The risk is huge, but the usual carelessness of the officials may save the owners. The officials are going to unite the airports of Moscow, but it will take them several years to unite Sheremetyevo and Vnukovo, so they will not be up to the independent Domodedovo for some time.


Author: Ksenia Dzhalagonia

Tags: Domodedovo     

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