OREANDA-NEWS. June 28, 2012. Basic Element Group, one of Russia's leading diversified business groups, Sberbank of Russia, the largest bank in Russia, and Changi Airports International, a wholly-owned subsidiary of Changi Airport Group, one of the leading airport operators in the world, in the framework of the St. Petersburg International Economic Forum, have signed a joint venture agreement to invest in and develop airports in Russia, reported the press-centre of Sberbank.

Basic Element will hold 50% plus one share, Changi Airports International (CAI) will hold 30% and JSC Sberbank will hold 20% minus one share in the joint venture.

Basic Element will contribute to the joint venture shares of the airports in the Krasnodar region including airports of Sochi, Krasnodar, Anapa and Gelendzhik. The total value of the assets exceeds USD500m.

The purpose of the joint enterprise is to further develop these airports in the Krasnodar region, to improve levels of service for passengers and air carriers, increase capitalization of the assets and to also expand the portfolio of airport assets.

Oleg Deripaska, CEO of Basic Element, said “We are pleased to co-operate with Sberbank and Changi Airports International. Basic Element has already done a lot to develop airports in the Krasnodar region in the run-up to the 2014 Olympic Winter Games. In co-operation with Changi and Sberbank, we will achieve even more, turning Krasnodar region airports - the gateways to the Sochi Olympics - into state-of the-art, highly efficient aviation enterprises. This will ensure the safety and comfort of passengers, and a quality of aircraft servicing in accordance with the highest international standards.”

German Gref, President and Board Chairman of Sberbank, said, “The participation of Sberbank in this newly created joint venture is an integral part of our investment strategy. We see great potential for increased added value in the Krasnodar region airports, given the development of tourism and the upcoming sport events which will make the region the focus of international attention.”

Lim Liang Song, CEO of CAI said: “This partnership is a strategic step for Changi Airports International in the Russian market. We are glad to join Basic Element and Sberbank in the further development of the airports of the Krasnodar region. Changi brings extensive experience in managing and consulting for airports in many countries. Our goal is to transfer best practices in airport operations, management and development.”