Putin Approves Sale of State's 30.4% Stake in Sheremetyevo Airport

President Vladimir Putin has signed a decree permitting the sale of the government's 30.4% stake in Sheremetyevo, Moscow's busiest airport. The move, announced on Thursday, removes the airport from Russia's official list of strategic enterprises, a necessary step before the stake can be offered to buyers.

The sale comes as Russia's federal budget faces mounting strain from the ongoing war in Ukraine. Official data from last month suggests the 2026 deficit could exceed planned targets by more than 1 trillion roubles (approximately $12.85 billion). In the first half of this year, the deficit stood at 5.73 trillion roubles ($69.6 billion), or 2.5% of GDP—1.7 times higher than the same period in 2025.

While the decree opens the door for a sale, it imposes significant conditions. The stake cannot be sold to foreign investors, and the buyer must continue the airport's core operations and modernisation plans. Crucially, the state will retain a "golden share," giving it veto power over major management decisions.

Sheremetyevo Holding, a Russian company whose ultimate owners are not publicly disclosed, controls 66% of the airport. Prior to its redomiciling from Cyprus in 2022, the holding was controlled by firms linked to Arkady Rotenberg, a close associate of Putin, and his partners.

Sheremetyevo is Russia's largest airport, with terminals capable of handling up to 87 million passengers annually. It served 43.5 million passengers in 2025. Despite Western sanctions and flight restrictions, the airport remains profitable, buoyed by growth in domestic travel and routes to countries like Turkey, Egypt, and Vietnam.

In January, Sheremetyevo acquired 100% of Domodedovo, another major Moscow airport, for 66 billion roubles at auction. Domodedovo, nationalised at the request of the Prosecutor General in June 2025, handles around 15 million passengers per year.