Special economic measures have been applied to the Cypriot structure of the Pulkovo Airport management company

On November 30, 2023, the President of the Russian Federation signed Decree No. 909 on the temporary transfer of the Pulkovo Airport management company from the Cypriot structure to the newly established LLC “VVSS Holding”, which will own 100% of the shares of this management company instead of the Cypriot structure. On the same day the Decree was published and came into force.

As follows from the Decree, the measures were taken in connection with "a threat to the national interests and economic security of the Russian Federation, resulting from the violation by certain foreign legal entities of obligations associated with the management of LLC Vozdushnye Vorota Severnoy Stolitsy (abbr. VVSS, English translation is “Air Gateway of the Northern Capital”), which is the management company of Pulkovo Airport.

OOO “VVSS Holding” will be established by the Russian Government, but it will not be its shareholder. The authorized capital of the new company will amount to 169 billion rubles, and 14 companies, including foreign ones (however, temporarily without the right to dispose of votes attributable to such shares in the new company), will become direct shareholders in order to preserve the property rights of such companies indirectly owning shares in the authorized capital of the Pulkovo Airport management company. The Russian Government will establish the governing body of the new company and approve its charter. It is noteworthy that from the date of the establishment of LLC “VVSS Holding”, obligations under loan agreements entered into by the foreign owners of the Cyprus structure and their affiliates for the purpose of financing the Cyprus structure will cease.