Tui, Europe’s largest holiday company, has cancelled a deal allowing the Russian oligarch Alexei Mordashov to use its name after the billionaire was hit by EU sanctions in response to Russia’s invasion of Ukraine.
Tui Russia was established in 2009 as a joint venture with Mordashov’s Severgroup to expand the business in Russia and Ukraine. Mordashov had invested in Tui and joined its supervisory board but he was forced to resign last week after the sanctions were revealed.
Tui had sold its stake in the joint venture at the end of March 2021 to KN-Holdings LLC, a company then wholly owned and controlled by Mordashov’s sons, Kirill and Nikita. However, Mordashov recently took back control of the company.
The brand licence agreement allowed Tui Russia to continue using the name in Russia, Ukraine, Belarus, Kazakhstan and Uzbekistan. It is thought that the Russian business is planning to announce a new brand name as soon as Thursday.
Fritz Joussen, the chief executive of Tui Group, said: “Tui condemns Russia’s attack and war against Ukraine. Our position is clear. The Tui brand must no longer be used by Tui Russia for its business and the company’s presence.”
Tui’s links with Mordashov have come under close scrutiny since the invasion of Ukraine, and Italian authorities last week reportedly seized a 65m yacht said to belong to him. Mordashov controls about a third of Tui’s shares via different investment vehicles.
Mordashov’s shares in Tui have been frozen, meaning he cannot sell them to realise any profits. He also resigned from Tui’s board as soon as the sanctions were announced.
Mordashov, one of Russia’s richest men, owns Severgroup, which includes the vast Severstal steel producer and a Tui stake.
The EU’s announcement of sanctions on Mordashov said he was, through Severgroup’s banking, media and industrial interests, “responsible for supporting actions and policies that undermine the territorial integrity, sovereignty and independence of Ukraine”.
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.
Vladimir Lukin, another Russian with links to Severgroup, also resigned from Tui’s board this week.
