The Russian billionaire Alexei Mordashov has resigned from the supervisory board of the world’s largest tourism operator, Tui, after he was
hit by EU sanctions over Moscow’s invasion of Ukraine.
Mordashov, a major shareholder in Tui, had resigned “with immediate effect”, the German group said in a statement on Wednesday.
“The aim of the EU sanctions is to prevent Mr Mordashov from disposing of his shares in Tui” and “from realising any proceeds or profits from his investment”, the company said.
The EU on Monday added Mordashov to its list of individuals to be placed under sanctions due to their close ties with the Russian president, Vladimir Putin, in response to Russia’s invasion of
Ukraine. Those affected have been hit by asset freezes and travel bans.
Mordashov, a metals magnate and one of Russia’s richest men, is the chairman of Severstal, one of Russia’s biggest steel producers. Severstal had stopped deliveries to the EU and will look to redirect them to countries where it does not face sanctions. However, it could be difficult to find buyers of about 3m tonnes of annual production destined for the EU, and it is thought likely that the profit it makes on each tonne of steel will fall.
Several directors of Severstal, including two British nationals, Philip Dayer and Alun Bowen, have resigned since the sanctions announcement, the company said.
Separately on Thursday, the Institute of Directors said it was “no longer tenable” for British people to hold board positions in Russian companies.
Mordashov has also resigned his directorship at Nordgold, a mining company incorporated in London, according to Companies House. Nordgold last year converted to a publicly limited company in preparation for a listing on the London Stock Exchange.
Mordashov had been hoping Nordgold would join fellow Russian-linked metals miner Evraz on the FTSE 100 index, but pulled the initial public offering after gold prices fell. He transferred the stake in Nordgold to his wife on Tuesday, company filings show.
He has been a shareholder in Tui for about 15 years and holds a 34% stake in the group through his company Unifirm Ltd.
Tui lists its shares in Germany and the UK. Any shares held on his behalf by an EU bank would be frozen, meaning neither Mordashov nor his companies would be able to buy or sell shares or receive dividends, although Tui is unable to give out dividends under rules imposed by Germany’s government in exchange for emergency loans during the pandemic.
Mordashov raised his stake in Tui to more than a third for the first time last year after a recapitalisation of the group as it sought to recover from the damage inflicted by the Covid-19 pandemic. If Tui were required to raise more capital he would be unable to take part.
There is uncertainty over whether Mordashov would be able to exercise voting rights in the company, as that would not involve a direct financial transaction.
TUI on Wednesday sought to distance itself from the measures taken against Mordashov. “The EU sanctions relate to Mr Mordashov as a person, not to Tui AG, in which he is a shareholder. In this respect, these sanctions against the shareholder have no impact on the company in which he holds shares,” it said.
In a statement on Monday, Mordashov said he had “absolutely nothing to do with the emergence of the current geopolitical tension” and did not understand why the EU had imposed sanctions on him.
I would say he is a soft Indian TV host. There are LOT of worse shouting hosts on Indian TV.
theprint.in
