Russian President Vladimir Putin has made a financial decision that could alienate Qatar, a pivotal Middle East ally.
Qatar, which in 2022 hosted the FIFA World Cup, has over 310,000 citizens and approximately 2.3 million expatriates. It has major investment stakes in global brands and one of the highest gross domestic products per capita in the world.
While the country has been relatively neutral toward Russia since the invasion of Ukraine in February 2022, the Qatar Investment Fund has been active on the Russian market for years, investing in joint ventures and various Russian government projects—making Qatar one of the few remaining international players in the country.
Now, Putin has ordered the transfer of all rights managing St. Petersburg's Pulkovo Airport from foreign shareholders, including the sovereign wealth fund Qatar Investment Authority and German airport operator Fraport AG, by shifting their stakes into a new Russian domestic company, according to reports. Pulkovo is Russia's second-busiest airport.
The Qatar Investment Authority held a 25 percent share, through an investment vehicle, in the Cyprus-registered concession that runs the airport. Fraport and Russia's VTB Bank each held 25 percent.
Newsweek reached out to the Qatar Investment Authority and Fraport via email for comment.
Other shareholders will retain their stakes but won't be able to vote because that right will be held only by Russian shareholders, according to a decree signed by Putin late on Thursday.
The airport's management company has 14 shareholders in total, including a consortium consisting of the Russian Direct Investment Fund, the Abu Dhabi sovereign fund Mubadala Investment Co. and private equity group Baring Vostok—all of which collectively hold the remaining 25 percent in shares.
"We must first verify the information and examine what this means in future for our involvement in St. Petersburg, which we have put on hold since the Russian war of aggression," a Fraport spokesperson told Reuters, referring to the Ukraine conflict.
According to the decree, there remains the potential for stakeholders' voting rights to be restored "upon their application, subject to the conclusion of corporate agreements with other participants in the company and upon the assumption of obligations to comply with Russian legislation."
It remains unclear what prompted Putin's decision.
On Sunday, Qatari Prime Minister Mohammed bin Abdulrahman bin Jassim al-Thani said in an interview that Qatar is continuing attempts to free Ukrainian children from Russia, with a goal of release before the Christmas holiday.
"Qatar has been mediating in different conflicts that [are] not only exclusive to the region," he said, according to The Hill. "But even beyond that. And this is something that's been in the foundation of the country foreign policy. And it's a core element that we are focusing on."
Russia's economy has been hit with massive sanctions from the West following its invasion of Ukraine. Some Russian oligarchs, such as Putin's billionaire companion Oleg Deripaska, have warned about the national economy "hitting the ice" because of drops in commodity prices.
Recent reports say a petition for bankruptcy purportedly filed by the St. Petersburg Stock (SPB) Exchange was rejected.
On November 2, the U.S. Treasury's Office of Foreign Assets Control added SPB Exchange to its sanctions list—along with measures targeting seven Russia-based banks and a banking executive—before suspending its trading in American securities. The SPB gives investors access to the international stock markets.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Nick Mordowanec is a Newsweek reporter based in Michigan. His focus is reporting on Ukraine and Russia, along with social ... Read more
