VVO’s new terminal.

A consortium comprising Singapore’s Changi Airports International (CAI), Russian Direct Investment Fund (RDIF), and Russia’s Basic Element [the diversified business group  controlled by Oleg Deripaska] is to acquire shares in Vladivostok International Airport (VVO) in Russia’s Far East from Sheremetyevo International Airport.

The deal – assuming all regulatory and corporate approvals are given – means the consortium will own 100% of JSC Terminal Vladivostok which owns and operates the airport terminal building, and 52.16% of JSC International Airport Vladivostok which holds the airport licence. RDIF, CAI and Basic Element, will each hold an equal interest of 33.3%.

Kirill Dmitriev, CEO of the RDIF, says: “The consortium has already started work to expand the airport’s international route network and attract new airlines from China. We see opportunities for further effective work in unlocking the potential of one of the leading airports in the Far East of Russia.”

REGIONAL ROUTES DEVELOPMENT PRIORITISED

Oleg Deripaska, Chairman of Supervisory Board Basic Element, points to VVO as a “strategic hub linking Russia and Asia”, and adds about its current cooperation with CAI: “Thanks to Changi, our long-time partner, Basic Element has done a lot for the development of the airports in the Krasnodar region. Our successful experience will also expand to Vladivostok Airport. Together with our consortium partners we will unlock the Far East’s rich economic potential.”

Lim Liang Song, CEO of CAI – whose projects include Tom Jobim Airport in Brazil, the first aerotropolis in India, and four airports in Krasnodar – comments: “Together with RDIF and Basic Element, we will develop Vladivostok Airport as one of the best air hubs in the region with strong air connectivity and top-class service – two of our priority areas. We will open up this region to the vast opportunities in international trade and tourism.”

VVO currently has the capacity to handle 3.5m passenger per annum and to receive all aircraft types.