Russia is selling its stake in Aeroflot at a loss due to sanctions
Russia plans to sell nearly 24% of its shares in Aeroflot. The Federal Agency for State Property Management has begun the process of selecting a transaction manager to evaluate the stake and determine the sale mechanism. The decision comes amid economic pressure from sanctions.
This was reported by the Foreign Intelligence Service.
“Despite official statements about the development of the financial market and raising capital through stock market mechanisms, the deal highlights the financial problems of the Russian economy. After the sale, the state will retain control over the carrier, but its stake will drop from 73.8% to about 50%,” the report states.
According to intelligence reports, the situation is complicated by the fact that the stake could be sold at a significant loss to the budget. “In 2020, the Russian Ministry of Finance purchased these shares using funds from the National Welfare Fund at $0.84 per share, while the current market value is approximately $0.66. Under these conditions, the sale of over 944 million shares could result in a loss of about $170 million for Russia,” the statement adds.
“Due to international sanctions, Russian airlines are facing a shortage of spare parts, an aging fleet, and rising maintenance costs. This significantly limits the pool of potential investors and reduces the asset’s appeal. According to experts, the main contenders for the stake could be Russian state-owned banks, business groups close to the government, or investors from the Middle East and Asia, which indicates Moscow’s limited ability to attract broad international capital,” the intelligence report explained.
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