Russia’s Federal Air Transport Agency has signed a 49-year concession agreement with Moscow Sheremetyevo International Airport (SVO), giving the airport management company the right to invest in the state-owned airfield infrastructure.
SVO will invest RUB61 billion ($890 million) in runways, taxiways and aprons, the agency said in a statement. The agreement is valid through Dec. 31, 2067 and could be extended for up to five more years.
The concession rule, which was published by the Russian government in May 2018, stipulates the SVO operator must renovate the two existing runways as well as build a west apron for the newly built third runway, which plans to open this year.
The concession fee is RUB1,000 per year. The airport will also be able to introduce an investment component in takeoff, landing and parking fees.
According to Russian legislation, airfields cannot be privatized and remain government property, even if the airport is managed by a private company and its terminal infrastructure was bought or rented privately. The concession allows the government to hand over the costs associated with airfield support from the state budget to a commercial company.
The Russian government also plans to sign concession agreements with Moscow Domodedovo and Vnukovo International airports soon.
Moscow Sheremetyevo airport is managed by Sheremetyevo Holding, 66% of which belongs to TPS Avia Holding (controlled by Arkady Rotenberg); 30.43% belongs to the Russian government. Aeroflot Airline and VEB Capital are minority shareholders.
