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                                                                                                                    10 July 2020
                                                                                                                        No. 1124

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Published biweekly – available by annual subscription only – www.mombergerairport.info
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AIRPORT DEVELOPMENT International News
Each issue of Airport Development focuses on a different region of the world, with global news at the end of this section. A list of
past focus regions published in recent years can be downloaded from the Bonus section in the subscriber pages of our website.

Focus Region: Eastern Europe
RUSSIA
Three leading Russian airports, all serving the country’s capital, achieved contrasting results
in terms of passenger growth in 2019. Vnukovo (VKO), Russia’s third biggest airport, has
retained its status as the growth-rate leader, having demonstrated a 12% year-on-year
improvement. In absolute figures, for the first time in its history, the airport recorded more
than 24 million passengers. For the winter season of 2019/2020 the airport handled 28 airlines,
including its anchor carrier Utair. Contributing factors for Vnukovo’s positive developments were the
aggressive fleet expansion of Aeroflot Group airline Pobeda, which allowed Russia’s only low-cost carrier
to expand its route network and increase the number of its flights and traffic; and the high growth rate of
Turkish Airlines was also a factor, as was the fact that Rossiya Airlines, another Aeroflot Group carrier,
retained its charter operations there, instead of moving them along with its scheduled flights to
Sheremetyevo.
Sheremetyevo (SVO), Russia’s main gateway, reported a notable 8.9% year-on-year increase in
passenger numbers, to 49.9 million in 2019. 19 new services were launched at SVO, including those
operated by Brussels Airlines, Vietnam Airlines, Japan Airlines, Turkish Cargo, and Belavia. The
significant advancement of Sheremetyevo’s ground infrastructure achieved in 2019 has now
prepared a solid base for more growth. For example, launched in September 2019, the long-awaited
third runway is poised to increase the airport’s capacity from 65 to 90 take-offs and landings per hour.
Also, in November 2019, Russia’s aviation authority Rosaviatsiya issued an approval for the re-opening of
Terminal C, which had been undergoing major reconstruction works. The rejuvenated terminal, which is
designated for international flights, served its first passengers in January 2020. With more than 127,300
m² of floor area, it has the capacity to handle 20 million passengers per year.
By contrast, Domodedovo (DME), Russia’s second-biggest airport, suffered from stagnating
passenger traffic for the second consecutive year. In 2018, the airport served 29.4 million
passengers, 1.2 million people less than the year before. The 2019 number fell again by 4.1% to 28.25
million. The primary reasons for the privately-operated airport’s stagnation are the long-term delays in
its airfield infrastructure development, a responsibility which lies within the remit of the Russian
government. This shortfall means that the airport operator is still unable to start using its newly-built
Terminal T2 because state aviation body Rosaviatsiya, the nation’s Federal Air Transport Agency, has
failed to satisfy the strict deadlines for related apron and runway reconstruction projects. The first wing
of the new T2, when completely ready for service, will be able to provide the airport with an additional
floor area in excess of 157,000 m². In addition, Rosaviatsiya has failed to build a new runway and the
existing Runway 2 has been partially decommissioned, its length reduced from 3,800 to 2,370 m, and
radio-communications systems dismantled. According to the Accounts Chamber of the Russian
Federation, these slippages have reduced the airport’s potential capacity by 35%. Furthermore, the
reconstruction of Domodedovo’s Runway 1 has not been completed in full. Alexander Neradko, the head
of Rosaviatsya, in an interview at the end of 2019, claimed that financial and organizational problems

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have finally been solved and that all construction works will be completed by the end of 2020. Despite
DME’s infrastructure hurdles, three Lufthansa Group’s airlines – Lufthansa, Austrian Airlines and Swiss –
are to continue to operate their Moscow flights to and from Domodedovo International, at least until
2025. The Group has extended its contract with the airport, after reportedly considering switching its
operations to Sheremetyevo. In another move, Air Astana, the flag carrier of Kazakhstan, decided to
transfer its flight operations from SVO to DME from the 2019 winter season. The move comes after a
recently signed code-share agreement struck with S7 Airlines, which has Domodedovo as its operational
base. #1124.1

Moscow-Sheremetyevo, Russia’s largest airport, has revealed two scenarios for the possible
development of the on-going air travel market crisis brought about by the global corona
virus spread. In an optimistic view, international services will resume in July leading to an eventual
recovery of pre-crisis traffic volumes by the end of 2020, according to Alexander Ponomarenko, Chairman
of the Board and co-owner of the hub airport. “Our forecast for this year has two scenarios. The first
implies that international flights will resume in July and the traffic numbers would then recover gradually
by the end of this year. The second scenario, a much graver one, says that a traffic recovery to 2019
levels would take much longer, no less than 12 months until mid-2021 at the earliest,” Ponomarenko has
told the Russian edition of Forbes. He also warns that, should the second scenario prevail, Sheremetyevo
(SVO) may have to lay off some staff, but he promises that the airport will try to keep its employees by
applying other cost-cutting measures first. The airport is watching the situation closely and will correct its
projections in accordance with the turn of events in Europe. From 1 April 2020, SVO transferred all
of its international departures and arrivals to Terminal F and all domestic flights to Terminal
B. Terminals E, C and D have been closed because of the radical decrease in passenger numbers. As of 6
April, the combined passenger traffic through Russia’s 33 largest airports declined by a colossal 89%,
according to the country’s International Airport Association data. “The Russian commercial aviation
industry has now dropped down almost as low as that of Europe,” the Association summarizes. The
passenger business drought in Russia started in March as a result of the global spread of the Covid-19
infection. Accordingly, the Russian government closed the nation’s borders and curtailed all international
air services, except for repatriation flights bringing home Russian citizens. #1124.2

Russia's Deputy Transport Minister, Aleksandr Yurchik, was among the guests of honour at the official
opening of Moscow-Sheremetyevo's new Terminal C. The first phase of SVO’s "new and improved"
Terminal C ensures that it is equipped to handle international flights. The revamped terminal has a total
floor area of 127,374 m² and the capacity to handle 20 million passengers per year. It boasts 84 check-in
desks and 160 passport control booths, which the airport hopes will ensure the speedy processing of
passengers and air crew. A new addition is an indoor pedestrian passageway connecting it to a five-level
parking garage with space for 2,500 vehicles. Speaking at the opening ceremony, Yurchik noted:
"Sheremetyevo has been a leader of the airport infrastructure development in our country, Europe and all
the world in recent years. The airport and it’s base air company Aeroflot, are the flagships of our aviation
industry. It’s a very necessary and important symbiosis." According to the Deputy Minister, the airport
development is based on a PPP project.
Aleksandr Ponomarenko, Chairman of the airport operator's Board of Directors, told guests: "Our own
investments into Terminal С amounted to RUB 32 billion (USD 520 million). As a result, the new terminal
will increase the airport's capacity to 80 million passengers per year. This is a critical step as we work
toward our strategic goal of serving 100 million passengers per year by 2030. Today, Sheremetyevo is
the largest airport in Russia and a critical part of the global transportation system. The launch of the new
terminal will strengthen our competitive positions within the local and global markets, and our leading

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position among Europe's major airports in terms of flight punctuality and passenger service quality proves
that the business strategy we have chosen is a sound one."
Terminal C was built as part of the Long-term Airport Development Programme and forms
part of SVO’s Northern Terminal Complex (Terminals B, C). The design of Terminal C naturally
combines the best tradition of Russian art and modern technologies. Its interior features a Russian
constructivist design.
An impressive 49.9 million passengers (+8.9%) passed through Moscow Sheremetyevo in
2019 to cement its status as Russia's busiest gateway. International passengers accounted for
26.6 million of the total, a year-on-year rise of 7.8%, while domestic passenger numbers soared by
10.3% to 23.3 million. The most popular international destinations served from SVO in 2019 were
Antalya, Yerevan, Paris, Beijing, and Tel Aviv, while St Petersburg, Simferopol, Sochi, Yekaterinburg, and
Krasnodar were the most popular domestic routes. #1124.3

Sheremetyevo International has been named Airport of the Year in the annual Wings of
Russia National Aviation Awards programme for the second year in a row. The awards, which
recognize excellence in 13 aviation and aviation-related categories, were announced in April 2020 in a
ceremony held in a video broadcast format. The Wings of Russia National Aviation Award is a programme
of the Association of Air Transport Operators of the Russian Federation, the industry publication Air
Transport Review, and the consulting company Infomost. They were established in 1997. This year's
award recipients were selected based on their performance in 2019 by a jury consisting of authoritative
industry experts, top managers of large companies, and representatives of leading business and aviation
publications.
In 2019, Sheremetyevo completed a number of large-scale investment projects: The
international passenger Terminal C, designed for 20 million passengers per year; the apron for Terminal
C, the platform for the Aviation Scientific and Technical Centre, and the third runway (Runway 3). The
capacity of the airport with the commissioning of the third runway and Terminal C is now 80
million passengers per year. The development of infrastructure and the improvement in the quality of
service have become the foundation for attracting and expanding co-operation with the largest air
carriers. In 2019, Brussels Airlines, Vietnam Airlines, Belavia, and Turkish Airlines Cargo all began to
operate at SVO, and the airport now serves flights to 19 new destinations. Sheremetyevo Airport has the
highest rating awarded by Skytrax, 5-Stars, and is one of the ten largest airports in Europe, once again
confirming its leadership in Europe in terms of service quality and world leadership in punctuality of
flights. #1124.4

Work began in 2019 to plan a second terminal for Zhukovsky Airport (ZIA) outside Moscow,
Evgeny Solodilin, Deputy Director of the airport operator Ramport Aero, has told the press. The decision
was made by the Zhukovsky stakeholders: Rostec Corporation and Lithuanian holding company Avia
Solutions Group, who sold their stake to Ramport in 2018. “Next year we are planning to consider the
possibility of building the second terminal,” Solodilin said. “We also need to build a large number of other
infrastructure elements, such as aprons. We are currently completing preliminary design work on a new
apron for 14 aircraft and will then file an application for a government expert assessment.” The
development strategy for Zhukovsky implies three stages: The first objective, which has been reached,
was to restore and upgrade the airside infrastructure of the Ramenskoye airfield and build a passenger
terminal with a total floor area of 17,600 m². The second and third stages saw the terminal gradually
expanded, first by 30,000 m² in 2018 and then by a further 13,000 m² by 2020. According to Solodilin,
the second stage increased the airport’s annual throughput capacity to 6 million or even 7 million
passengers. Once the entire project is complete, the total area of both terminals will reach 60,000 m²
and its throughput capacity 12 million passengers annually. In other plans, an international cargo

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terminal, with an area of 10,000 m² and capable of handling 120,000 t of freight per year, is
to be launched at Zhukovsky. The existing cargo terminal handles exclusively domestic freight. It will
be demolished once the new facility has been put into operation, and the space thus freed will be used
for another apron. Solodilin declined to disclose the new cargo terminal’s future customers. According to
earlier reports, there is an agreement in place between Ramport Aero and a new freight operator, Sky
Gates Airlines. There are also several existing clients for freight operations into and out of Zhukovsky,
including Irkut Corporation, Alrosa, and the Russian Emergencies Ministry. #1124.5

In 2019, St Petersburg’s Pulkovo Airport (LED) served a total of 19,581,262 passengers,
8.1% more than in 2018. Domestic flights carried 12,110,964 passengers (+9.8%), international
flights 7,470,298 (+5.3%). The number of aircraft movements increased by 1.9% to 168,572. The peak
day for passenger traffic was 2 August 2019 with over 77,000 travellers, the largest number handled in
one day in the airport’s history. During 2019, three new foreign airlines started scheduled flights from
LED: Lucky Air, SunExpress, and Wizz Air UK. The route network of Pulkovo Airport was expanded by 14
new destinations: The domestic destinations of Elista, Gelendzhik, Irkutsk, Khanty-Mansiysk,
Nizhnevartovsk, Novokuznetsk, and the international destinations of Eilat (Israel), Guangzhou, Hangzhou,
and Kunming (China), Izmir (Turkey), Karshi (Uzbekistan), Olbia (Italy), and Palma de Mallorca (Spain).
Top destinations from Pulkovo Airport in terms of passenger traffic in 2019 were Moscow, Simferopol,
Sochi, Kaliningrad, and Yekaterinburg in Russia and the foreign destinations Antalya, Minsk, Frankfurt,
Munich, and Paris. Rossiya Airlines, Pobeda, Aeroflot, S7 Airlines, and Ural Airlines were the top Russian
carriers at Pulkovo in terms of passenger numbers. In total, they provided services to 11,889,954
passengers at LED, or 60.7% of all passengers in 2019. Among foreign airlines, Lufthansa, Belavia,
Uzbekistan Airways, Finnair, and Turkish Airlines became the leaders at LED for 2019. In total, they
carried 1,405,456 passengers at Pulkovo, or 7.2% of total passengers.
In 2019, Pulkovo Airport implemented a number of projects to expand the parking complex,
launching a new long-term parking garage, a minute’s walk from the terminal. The other
project included the expansion of the road from three to six lanes at the exit from the arrivals area.
Pulkovo Airport operator implemented a new concept for the commercial area of the domestic departures
hall. The project included the relocation of the existing facilities and the launching of new establishments.
In September 2019, the RegStaer Group of Companies, the leading Russian travel retailer in airports
acquired by Dufry, opened a walk-through duty-paid outlet as an anchor store of the renovated
commercial area. Pulkovo Airport introduced a gastromarket format for food and beverage services. The
Vino & Vkusnosti organic foods and products market was launched in the general area of the arrivals hall.
CRAFT, a local farm products store, a wine shop, and a cafe, were opened in the domestic departures
hall. Another novelty was the launch of a duty-free outlet in the international arrivals hall. – For the
future, four alternative reconstruction plans are being considered for the airport.
On 1 October 2019, Pulkovo Airport started to serve citizens of 53 countries entering the Russian
Federation on the basis of electronic visas. In December 2019, the airport received the approval from the
Ministry of Transport of the Russian Federation to introduce seventh freedom traffic rights for foreign
airlines to perform flights to St Petersburg from 30 European countries starting 1 January 2020. -- The
7th-freedom traffic rights allow the airline to perform flights between two foreign countries while not
offering service to the carrier’s own country. #1124.6

After successfully hosting the 2014 Winter Olympics, Russia’s Black Sea resort destination Sochi
has evolved into a year-round tourist centre, with mature and steady passenger flows from
both business and recreational markets. Sochi International Airport (AER) is now one of
Russia’s top-five airports by traffic and is outperformed only by the country’s two largest cities of
Moscow, with its cluster of three airports, and St Petersburg-Pulkovo. Sochi enjoys a favourable Black Sea

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coastal geographic location and its infrastructure capabilities are now well developed. Growing incoming
tourist flows into one of Russia’s favourite leisure destinations offer wide opportunities for the further
growth and development of the airport itself and for airlines operating there. Sochi has been on a fast-
growth track for several years, primarily due to the increasing popularity of domestic Russian tourism. In
the wake of the weakening national currency and restrictions imposed on international travel due to
geopolitical tensions, Russian holidaymakers have changed their preferences and now prefer spending
their vacations in the leisure resorts in the south of Russia. Furthermore, over the last five years, the
region hosted two major sporting events: the Winter Olympics and the FIFA World Cup, which further
boosted its popularity and fostered the radical development of infrastructural elements both inside the
airport, in the city itself, and also in the wider region. In the lead-up to the 2014 Winter Olympics,
the airport underwent a thorough modernization, including the renovation of apron and
taxiway surfaces, upgraded lighting equipment, and radio navigation services. The airport’s
two runways were extended, the weather minima were lowered, new air traffic management (ATM)
technology implemented, and new navigation, communications, surveillance and meteorology equipment
was introduced. Also, in 2013, the airport received a new VIP passenger terminal, an emergency and
rescue station and air traffic control tower.
Today, Sochi Airport uses energy-saving technologies such as solar batteries installed on the
terminal roof which provide 85% of the airport’s hot water in summer and 25% in winter.
Another key development was the airport being linked not only to the city by direct rail and bus
connection but also to the neighbouring Republic of Abkhazia, making that area also accessible for
tourists. At 6.76 million passengers in 2019, Sochi Airport’s capacity is now higher than its nearest
neighbours of Krasnodar-Pashkovsky and Anapa-Vityazevo. Even without a based airline, traffic has been
growing at roughly the same rate as Aeroflot has forecast for the next five years, which supports the
belief that the airline’s plans for using the airport as its regional base will be mutually beneficial,
contributing to the further development of this regional airport. Aeroflot and its sister airlines generated
almost 45% of Sochi’s total domestic traffic. With a total of 61 destinations serve during the 2019
summer, Sochi has the widest route network of any airport in the south of Russia. At present, the
airport’s hourly capacity is 2,000 domestic passengers, 500 international travellers and 24 aircraft
movements. #1124.7

Krasnodar-Pashkovsky International Airport (KRR) has prepared terms of reference for the
development of design documentation for its new airfield and terminal complex. The technical
task consists of three parts. The first describes the task of reconstructing the airfield infrastructure,
including the apron, taxiways and associated engineering networks. The second contains information
about the objects of the State Corporation for the Organization of Air Traffic in the Russian Federation:
the transfer of radar objects and a control tower, as well as the construction of an office building. The
new tower will be located in close proximity to the new terminal and apron. The third part of the
technical task concerns the terminal and its office and technical territory, including office buildings, office,
warehouse, a new cargo terminal, parking lots, and related engineering infrastructure. The competitive
selection of contractors for the development of project documentation began at the end of January 2020
in accordance with the norms of the Federal Law of the Russian Federation 223-FZ.
Krasnodar is working on the new terminal project with the design and engineering and
consulting company Signi Group, as well as consultants from the Dutch company NACO and
Changi Airports International. Once complete. it will be capable of serving at least 6.5 million
passengers a year. It is designed to work with passengers, baggage, and aircraft of both domestic and
international airlines. In addition, it will create a separate zone for transfer passengers and for those
traveling from the countries of the customs union. The terminal will have an area of 70,000 m² and the
throughput capacity will almost double, to 2,600 passengers per hour. The volume of investments in the

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first phase of construction will be about RUB 25 billion (USD 407 million) and was expected to start in
2021. #1124.8

Regional authorities in Omsk Oblast are actively seeking investors to complete a tender for
the new Omsk-Fyodorovka Airport construction in a State-private partnership. According to
documents prepared in the Omsk Regional Government, the new airport for 3 million passengers a year
located on an abandoned airfield site will become a base for a multi-modal transport hub because of the
intercontinental routes crossing the region. The cost of completing this project is about RUB 18 billion. To
form a pool of investors, regional authorities hired Vneshekonombank for consulting services.
Vneshekonombank must conduct an analysis of the investment market; formulate optimal conditions of
the state-private agreement; prepare an investment memorandum; keep consulting the regional
authorities while the tender is being held. However, the real situation could be somewhat different.
According to Raedium Investments analytics' opinion, completing of the construction is overpriced, which
makes it difficult to attract a strategic investor. – The existing Omsk-Tsentralny Airport (OMS) handled
1.38 million passengers in 2019 (+26.9%). #1124.9

There are plans to complete the overhaul of Norilsk-Alykel Airport (NSK), the main transit
hub in the Norilsk industrial district and the Taimyr Peninsula, by September 2020. The
upgraded Alykel Airport will receive a certificate of compliance. After being reconstructed, it will rank
among the most advanced airports in the Russian Arctic. The reconstruction of the airport is a highly
important stage of the Arctic zone's development because the facility has federal status. "We need to
complete this whole job this year and open the entire facility. It should start operating by September and
should also receive a certificate of compliance," The head of the Federal Agency for Air Transport
(Rosaviatsiya), Alexander Neradko, said at a meeting in Norilsk. He also noted that the airport continued
to handle aircraft during the reconstruction work. The preparations for the airport reconstruction project
began in 2015, and its runway was overhauled in 2016-2018. In 2019, workers started upgrading the
airport's ground infrastructure. Overall reconstruction investment will exceed RUB 12.5 billion. Federal
funding totalled RUB 7.6 billion, and Norilsk Nickel, the owner of the airport's buildings and facilities
contributed over RUB 5 billion for these purposes. #1124.10

Russian state consultants have approved the natural gas company’s plans for an airport in
the Gydan Peninsula, on the tundra lands located on the eastern side of the great Gulf of Ob.
The new infrastructure is to serve Arctic LNG 2, the project currently under development by Novatek. It
will handle personnel flown in and out to the industrial installations, as well as production materials,
Glavgosekspertiza informs. The state company on the 27th December approved the project, consequently
paving the way for its construction. The new airport will be built in two phases, the first of which includes
the runway and its solid pavement, taxiways, aprons, radio-navigational equipment, as well as buildings
for passengers and service personnel. Also connecting roads, communications, electricity grids and gas
supply infrastructure will be developed. The second construction phase includes a commuter hotel with
cafeteria and various technical buildings. The territory of the airport and its facilities will be closed off
with fences. It is believed that the new airport will handle aircraft like the An-24, An-26, ATR-42, ATR-72,
Dash-6-400, Dash-8 and L-410.
The project is not the first airport built from scratch in the area. In late 2014, Novatek
opened its airport in Sabetta with a 2,704-m by 46-m runway, serving the Yamal LNG
project. Novatek is in full swing with the development of several huge industrial projects in Yamal and
Gydan. In June 2019, the company got Glavgosekspertiza’s approval for the building of the Utrenneye
seaport. The Arctic LNG 2 project is based on the resources of the Salmanovskoye field, a structure that
holds 1.98 trillion cubic meters of natural gas and 105 million tonnes of liquid hydrocarbons. It is located

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in the Gydan Peninsula, near the shores of the Gulf of Ob. On the other side of the bay lies Sabetta and
the Yamal LNG plant. The project is to be able to produce up to 19.8 million tonnes of LNG per year and
have production launch in 2022. #1124.11

Talks are being held on flights to Korzunovo, the abandoned airfield controlled by Russia’s
Northern Fleet near the border to NATO country Norway. The Nornickel company and its
subsidiary unit Port Liinakhamari reportedly have initiated negotiations with Russian military authorities
over the possible launch of commercial flights to Korzunovo. Port Liinakhamari eyes flights to the local
airport in connection with its grand tourism development projects in the area, the Finmarket news agency
reports. The tourism development company plans to invest more than RUB 10 billion in the Pechenga
municipality, a border area to Norway and Finland. Included in the plans is the building of a seaport in
Liinakhamari that can handle cruise ships, as well as the airport in Korzunovo. The tourism cluster in the
area is to be fully ready by 2030. It is to offer jobs to about 500 people, Nornickel’s Dmitry Pristanskov
said during a visit to the Kola Peninsula. The airport could potentially also serve seaport developers that
intend to build a major container terminal in the Pechenga Bay. The investments come as the Nornickel is
closing its nearby plant in Nikel. The tourism project is to create new jobs and economic activity in the
area that now faces a serious economic decline. Over the next three years, Nornickel will invest RUB 2.65
billion in the area and over the next ten-year period that sum will be multiplied. Previously, a sum as high
as RUB 140 billion (EUR 2 billion) over the next five years was mentioned. An agreement was signed by
Murmansk governor Andrey Chibis and Nornickel President Vladimir Potanin in October 2019.
The Korzunovo airfield was originally built by occupying Nazi forces during WW2. Following the war, the
runway and base housed units of the Soviet Northern Fleet aviation, including the 912th specialized air
transport regiment. The last aircraft and helicopters were reportedly transferred to one of the airports
near Severomorsk in 1998. With the departure, all landing lights, radio-communication gear, and radars
were demolished and moved away. #1124.12

Russia’s skies are opening for foreign airlines. A planned partial liberalization of the country’s skies
for foreign airlines could well bring Russia in line with the level of freedom enjoyed for decades in the
airports of Western and Central Europe and see a leap in the number of foreign airlines operating there.
In late September 2019, Deputy Prime Minister Maxim Akimov, who supervises the country’s transport
industry, gave his support for St Petersburg’s Pulkovo Airport to be granted new rights under the Open
Skies regime, permitting ‘seventh freedom flights’, which would allow foreign airlines to fly to Pulkovo
from any country, not just their place of registration. Four other Russian airports already have fifth-
freedom traffic rights, which entitle airlines to board passengers at a stopover during a flight between
their country of origin and a third country. Of these, two are operated by Novaport, one of the largest
and fastest-developing regional airport operators in Russia. More liberal skies will inevitably
demand improved airport infrastructure to match and cater to increased demand. Novaport is
exceptionally well placed to support the country’s nascent aviation liberalization and ambitious
infrastructure overhaul.
In 2016, Novaport acquired a controlling stake in Kaliningrad Airport. The comprehensive
overhaul and large-scale reconstruction of its passenger terminal, increasing its size from 12,000 m² to
40,000 m², paved the way for the airport to become a key element of the transport system for the
western-most region of Russia.
Investing in Novaport and the Russian airport sector are Meridian Capital Ltd, the international
investment firm headquartered in Hong Kong with a diversified investment portfolio spanning consumer
goods, real estate, hospitality, infrastructure and natural resources. Meridian Capital and its shareholders
own 50% of the airport alongside co-owner AEON Corporation. Yevgeniy Feld, founding principal of
Meridian Capital, explained the Novaport’s significance as “a flagship investment in our global portfolio at

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Meridian Capital Ltd. We are extremely supportive of the on-going liberalization of Russia’s skies.
Novaport continues to devote significant resources to the modernization of regional airport infrastructure
and believes that the potential impact on economic development is enormous. The exceptional
commitment to enhancing efficiency and raising standards by our partner and co-owner AEON
Corporation ensures that Novaport will continue to demonstrate impressive growth and remain at the
heart of efforts to improve Russian airports and regional connectivity.” -- Russia’s commitment to Open
Skies, and the introduction of a simplified e-visa scheme in key locations such as Kaliningrad, mean that
Novaport is exceptionally placed to cater to any future boom in passenger numbers. If, and when, the
Russian Transport Ministry approves Pulkovo Airport’s proposal, the possibilities for expansion appear
endless.
In 2019, Novaport serviced more than 24.5 million passengers at its 18 airports across
international and regional destinations covering 162 cities and 30 countries, making
Novaport one of Russia’s largest airport operators. Efforts to contain the spread of Covid-19 have
led to a significant decrease in travel and related airport services. Since then, Novaport has implemented
health and safety regulatory guidelines in its airports to allow essential travel to occur safely. – Novaport
holds a major equity stake in regional airports across the Russian Federation: Novosibirsk, Chelyabinsk,
Volgograd, Tomsk Astrakhan, Chita, Tyumen, Perm, Murmansk, Kemerovo, Kaliningrad, Mineralnye Vody,
Ulan-Ude, Vladikavkaz, Voronezh, Saranks and owns minority interests (48-49%) in 2 airports, Barnaul
and Stavropol. #1124.13

Meridian Capital Ltd, a global investment firm based in Hong Kong, has announced that it has
completed the sale of its shares in Russian regional airports owner Novaport Group to co-shareholder and
long-term partner, AEON Corporation, a Russia based investment group. AEON founder Roman Trotsenko
will now be the owner and primary shareholder of Novaport. “After fifteen years of joint ownership in
Novaport, taking the group through major operational improvements and an expansion of its footprint,
we exited this business which is now under the experienced care of Mr Trotsenko,” said Yevgeniy Feld,
Principal at Meridian Capital. The investment was successfully exited by Meridian Capital at the end of
2019.
In 2004, Meridian Capital had invested in a minority stake of Novosibirsk Airport alongside AEON. Over
time, the two partners oversaw an investment programme totalling approximately RUB 35 billion in the
group’s airport infrastructure, becoming co-owners of one of the largest regional airport operators in
Russia with 18 airports across the country. “The partnership with Meridian Capital has served Novaport
well over the years as we worked together to bolster regional economic development and tourism, and
increase the modernization and capacity of airports,” said Roman Trotsenko, owner of Novaport and
AEON. Airports will need to adjust during this challenging time and we are prioritizing the safety of our
employees, the airlines and their customers.”
“At Meridian Capital we are continuously monitoring the global marketplace and reviewing our investment
strategy; our priority is to seek out investment opportunities and work with partners having the expertise
to grow and enhance businesses,” said Feld. “We are extremely proud of the role we have played in
supporting the growth of airport infrastructure in Russia over the many years of our investment in
Novaport.” #1124.14

BELARUS
The development concept for Minsk National Airport is expected to be adopted in the near
future, Belarus' Transport & Communications Minister Aleksei Avramenko told journalists ahead of the
final session of the Board of the Ministry on 30 January 2020. “We intend to adopt the development
concept of Minsk National Airport that will conceptualize the new terminal project and to get down to the
pre-investment stage soon,” Aleksei Avramenko said. Plans are also in place to finish renovation of the

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airfield in Orsha and start renovating the first runway of Minsk National Airport. “Moreover, we are
working on the project to build a rail link between Minsk and the airport,” Avramenko noted.
“This is a large-scale project, and we intend to launch it soon.” Pre-design and design work on the
project is currently under way. The project provides for building a separate railway line running from
Minsk’s central railway station to Minsk National Airport. “We need to remodel the rail track within Minsk
and build a third rail track and a new line between the Gorodishche railway station and the airport
(around 18 km long),” Aleksei Avramenko said. “Ultimately, passengers will be able to travel from the city
centre to the airport in half an hour by train shuttle.” -- “Last year we reported a record high number of
passengers – more than 5.1 million (+12.5%). It was a significant milestone. #1124.15

Construction of a new terminal at Minsk National Airport (MSQ) is expected to start in 2021,
Transport & Communications Minister Aleksei Avramenko told the press. “The existing terminal can
handle 7 million passengers. If the number of passengers continues to grow at the current rate, the limit
will be reached by 2022. “This is why we intend to start building a new terminal in 2021,” the Minister
said. According to him, the project is currently in the pre-investment stage. The capacity and design of
the new terminal are yet to be decided. Its connection with the new railway line is also important
because it should be convenient for passengers who will arrive at the airport by train. Several financial
institutions have been invited to participate in the project, including the European Bank for
Reconstruction & Development, the World Bank, the European Investment Bank, and the Asian
Infrastructure Investment Bank. “Now we should choose a bank we will work with,” Avramenko said. By
the way, several banks may be chosen to participate in the project. “Plans are in place to present the
feasibility study of investment in March-April 2020. It will concern the airport rail link but will also feature
some elements of the new terminal. If passenger traffic continues to grow at the current rate, then we
will need to consider expanding the terminals again. This is why we should have a general concept of the
development of the airport premises now,” Aleksei Avramenko added. #1124.16

The setting up of a business aviation centre at Minsk’s National Airport (MSQ) has been
completed resulting in a modern, multi-functional facility. It includes a hangar complex with a
total area of over 4,000 m² and a passenger terminal. The project was implemented by ZAO Investment
Financing under the aegis of the Transport and Communications Ministry in 2016-2019. Construction itself
took 16 months. It was finished in December 2019. The business aviation centre is expected to enhance
the commercial appeal of the airport and bring some aircraft owners from airports of Russia, the Baltic
States and Scandinavia to Belarus. In turn, it will have a positive effect on Belarus' investment appeal as
a whole. -- The main advantage of business aviation is the ability to carry out domestic and international
flights to any destination and without a timetable. #1124.17

UKRAINE
The management of Kyiv’s ‘Igor Sikorsky International Airport’ (Zhuliany; IEV) has
developed a master plan for the reconstruction of the airfield and the extension of the
runway by 550 m. This requires the assistance of the City Administration, said the head of the Board of
Directors of the airport, Denis Kostrzhevskiy, in an exclusive interview with the Interfax Ukraine agency.
"In order to be able to serve larger aircraft in any weather condition, Kyiv Airport needs to upgrade the
airfield category. A master plan for the reconstruction of the Kyiv airfield has been developed, and it has
five different variants. Each of them implies a runway extension by 550 m, improved landing approach
system characteristics (including lighting navigational aids and radio navigation aids). As a result of the
reconstruction, the configuration of the airfield will change," said Denis Kostrzhevskiy. He explained that
now, the largest aircraft that can be serviced at Zhuliany without any restrictions is the Boeing 737-800;
however, after the reconstruction, the airport will be equipped to serve aircraft like the Airbus A321 or

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Boeing 737-900. "The master plan was developed by a foreign company that has huge experience in the
reconstruction of airfields. Ukrainian experts and design institutes also took part in its development as
they adapted this project to domestic norms and rules. The estimated cost of the works ranges from EUR
80 to 100 million, depending on the decisions that will be made," said Kostrzhevskiy, emphasizing what is
needed for the further development of the facility: The allocation of land for lengthening the runway, and
finding money for the reconstruction. "The airport belongs to the City ... There are different ways to raise
the money: A loan or a concession tender. If the City chooses the concession, then, of course, Master
Avia, the company that provides ground handling at the airport, will participate in this tender. Perhaps,
this solution will be the final. Then, loans will probably be allocated. Perhaps, it will be financing from the
City budget. Or maybe, it will be a lease with an investment obligation. We don’t know for sure," said
Denis Kostrzhevskiy. According to him, the issues of land allocation and raising of funds can be resolved
only by the Kyiv City Council and the Kyiv City State Administration. "Master Avia is obviously interested
in choosing the solution as fast as possible, since after the reconstruction, Kyiv Airport will have better
technological competitive qualities, and it will be able to compete with Boryspil Airport (KBP)," concluded
Kostrzhevskiy. – The European Investment Bank (EIB) considers issuing a EUR 300 million credit line to
Kyiv Boryspil Airport to part-finance runway reconstruction and Terminal D expansion that will add to the
attractiveness of KBP.
Kyiv International Airport (Zhuliany) is 90% owned by the UFuture Investment Group of the Ukrainian
businessman Vasyl Khmelnytsky and 10% by the managing partner. The airport is located 8 km from the
centre of Kyiv, and its area is 265 hectares. It has one runway (2,310 m by 45 m). In just seven years of
co-operation of UFuture with the Igor Sikorsky Kyiv International Airport, more than UAH 2.5 billion have
been invested in it. The last reconstruction at the airport was carried out in May 2019. Then, the area of
Terminal A was increased by 9,500 m² - to 23,700 m². Also, the parking space near the terminal was
reconstructed and increased by 40%. Now, its capacity is 135 parking spaces. In the last reconstruction,
UFuture invested UAH 630 million. -- UFuture Investment Group combines business projects and social
initiatives of the Ukrainian businessman Vasyl Khmelnytsky. In addition to Kyiv Airport, the Group
includes the UDP development company, the Bila Tserkva industrial park, innovative parks UNIT.City and
LvivTech.City, and others. #1124.18

Rivne Regional State Administration and China Power (Sinohydro) have signed a
memorandum on the development of Rivne International Airport. “Chinese investors are
interested in Rivne International Airport. The relevant memorandum was signed by the Head of the Rivne
Regional State Administration, Vitalii Koval, Chairman of the Regional Council, Oleksandr Danylchuk, and
China Power (Sinohydro) Deputy Manager for Eurasia Market Development, Chen Shijun, on 14 January
2020. China Power, which employs 260,000 people, is one of China's top five largest companies. It has
specialized in infrastructure for the last ten years. -- Rivne International Airport was added to the pilot
investment project of the Ministry for the Development of Economy, Trade & Agriculture on the
restoration of regional airports. Within the project, private capital is expected to be attracted in the
development of Rivne Airport that may become a basis for the creation of a technological hub in Western
Ukraine. #1124.19

The Cabinet of Ministers has decided not to finance designing and building Prydniprovya
Airport in favour of designing and building Dnipropetrovsk Airport (both are located in the
Dnipropetrovsk region), according to Government resolution No. 1010 dated 4 December 2019. “To
recognize Government resolution No. 536 dated 19 June 2019 approving the procedure for using the
funds provided for in the national budget for the design and construction of Prydniprovya Airport in the
Dnipropetrovsk region to be invalid,” the document says. The State-owned enterprise (SOE) Financing of
Infrastructure Facilities has announced a new tender for the development and examination of the

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construction of Dnipropetrovsk Airport. Before the corona crisis, terminal and runway construction work
was scheduled to start in summer 2020.
The regional administration and a private investor will work on the airport project. Using Government
funds, a 3,200-m runway equipped with modern navigation systems, meteorological and lighting
equipment will be built. The new international terminal and a VIP terminal in a single complex will be
built by Ukraine’s DCH industrial and financial group. It is planned that it will have a high throughput – up
to 1,000 people per hour. The total project cost is UAH 4.8 billion. #1124.20

At the first Ukrainian government-sponsored investment forum since President Volodymyr
Zelenskiy’s election, hundreds of millions of dollars in investments and loans were promised.
Most of the money would be channeled to the government-controlled part of the Donbas where the two
easternmost regions of Luhansk and Donetsk are located. During his keynote speech, Zelenskiy asked the
500 foreign and Ukrainian attendees to not cross out Ukraine as backward and hopeless. “Ukraine is a
country of opportunities. And today they are knocking on your door," he said. "But as they say,
opportunity never knocks twice. So do not miss the opportunity, please. Don’t sleep through Ukraine.”
Alain Piloux, the Vice President of the European Bank for Reconstruction & Development (EBRD),
Ukraine’s largest foreign investor, told the forum participants that the EBRD has plans to loan EUR 300
million for the development of regional roads, while noting that Ukraine is the top destination for the
bank's loans. At the forum, Zelenskiy and Prime Minister Oleksiy Honcharuk opened a two-lane, 225-
kilometer highway that connects Mariupol with Zaporizhzhya, a city in the southeast with growing airport
traffic.
As part of the programme for the development and construction of regional airports in Ukraine, Odessa
Airport will get a modern 2,800-m runway, and state-of-the-art aeronautical equipment will be
installed. This will allow ODS to operate in any weather and serve all Category C and some Category D
aircraft, increasing the handling capacity to about 3.5 million passengers within two years after
commissioning of the airport. It will also attract cargo flows from China to Europe sent via the New Silk
Road. #1124.21

Multimillionaire Oleksandr Yaroslavskiy has started building a USD 50 million terminal at
Kharkiv Airport (HRK). The airport in the Dnipro region in the southeast handled 1.3 million passengers
in 2019. At the forum, Yaroslavskiy said he was also ready to invest USD 100 million for the
construction of a new airport in Donetsk, which was destroyed in the war. #1124.22

MOLDOVA
The last period associated with the transfer of Chisinau Airport (KIV) to the concessionaire
Avia Invest can be considered a turning point, since even taking into account the increased level
of political and economic instability in the whole country, the concession company was able to
demonstrate that Chisinau International Airport can become a successful example in terms of
infrastructure development, an increased passenger comfort level, and favourable conditions for airlines.
In a relatively short period, the concessionaire Avia Invest S.R.L. managed to modernize Chisinau Airport,
turning it into a modern comfortable airport, which is a serious player in the airport services market in the
region of south-eastern Europe. The main infrastructural transformations of Chisinau Airport over the
past period show that they were all aimed not so much at maintaining the infrastructure as at preparing
and adapting KIV to modern and ever-increasing requirements dictated by the airport services market,
taking into account the fact that the horizon of operational planning of activities applicable to such a
market varies from three to ten years. So, over the past six years, Avia Invest, in terms of modernizing
the airport, has carried out the following landmark transformations: Expansion and modernization of the
existing passenger terminal. The entire terminal infrastructure has been improved in order to maximize

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the comfort of passengers crossing its threshold. In particular, the arrivals hall and sterile area were
expanded, the number of check-in desks was increased, recreation areas for passengers with children
were expanded, a modern, comfortable room for mother and child was equipped, a panel with multiple
information screens was installed, etc. All this raised Chisinau Airport to a new excellent level of comfort,
both for passengers and for seeing off and meeting guests.
Avia Invest pleasantly surprised passengers with improvements at KIV. Now passengers will be able
to take advantage of the increased comfort of the waiting and departures area, which has
expanded by more than 800 m². The total area of the departures area now exceeds 2,000 m². The
waiting room is the place where passengers spend most of their time and that is why Avia Invest is
constantly improving conditions, increasing comfort and expanding the spaces reserved for passengers.
The comfort zone on the second floor is equipped with soft chairs, providing perfect conditions and
meeting all the necessary requirements and modern technologies to create an ambience for a pleasant
flight. Here, passengers can enjoy their favourite books using the electronic library, another project
launched at the airport in early 2019. The Bookmate application provides access to over 850,000 books
on various subjects in 12 languages.
The transformation also has included a new multi-storey parking garage with 800 spaces, with a total
area of about 24,000 m². This carpark is, in a sense, the first successfully completed project of this kind
in the Republic of Moldova. Another project was the modernization of airfield infrastructure, like apron
modernization, the commissioning of a new runway, which will be used during the reconstruction of the
main runway, the modernization of the runway lighting infrastructure, the beginning of modernization
and expansion of taxiways and the runway itself, and the construction of a drainage system. Thus, Avia
Invest invested more than EUR 6.5 million on modernizing the airfield lighting, adapting the
system to the highest operational category (Cat 3B), although the concession agreement did
not provide for this. #1124.23

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