Russia considers taking $1.3bn from wealth fund to recapitalise Aeroflot
Russia is considering taking $1.3bn from its national wealth fund to recapitalise Aeroflot.
According to Moscow sources, the wealth fund will buy Aeroflot’s new share issue through an open subscription and spend an additional $690.9m in equity stakes to help other struggling carriers.
As a result of the new issue, the Kremlin’s stake will need to stay at the current 57.34 per cent, Russian news agency Interfax reported.
The funding is part of a new package of measures to help the country’s aviation sector following the devastating impact of Western sanctions.
Just last week the Kremlin pledged £181m to help airlines refund passengers flying on cancelled routes, Morning Wire reported.
“The subsidies will be used to refund passengers the cost of tickets on routes that have been cancelled due to external restrictions, which will save carriers their own working capital, which means there will be financial resources to ensure flight safety,” said Russian Prime Minister Mikhail Mishustin.