Russia nationalizes 16 terminals from the country's largest warehouse operator

A Moscow court has ruled in favor of the Russian Prosecutor General’s Office in its lawsuit against the British logistics company Raven Russia, ordering the transfer of 16 warehouse complexes to the Federal Property Management Agency (Rosimushchestvo), the company said.

Raven Russia said the complexes, built and acquired since 2005, were deemed by the court to be “transport terminals operating under natural monopoly conditions” and should therefore be transferred to state ownership. The hearing took place on January 31.

According to the Prosecutor General’s Office, cited by Kommersant, Raven Russia acquired the terminals in violation of foreign investment laws, ultimately amassing a network of facilities near critical transport infrastructure, including the Moscow Ring Road, the city’s airports, and the seaport in St. Petersburg. In March 2022, the company sold its Russian business to local top management, a transaction prosecutors claim was intended to conceal foreign ownership. The Prosecutor General’s Office sought to have the sale annulled.

The hearing was held behind closed doors, and the court’s decision is unlikely to be made public, reported RBC. Ivan Veselov, who represented Raven Russia in court, said prosecutors requested the closed session, citing the need to “protect the confidentiality of the defendants.”

Raven Russia said the proceedings were marred by procedural violations, called the ruling unlawful and unfounded, and said it would appeal. It pledged to continue fulfilling its obligations to tenants and business partners “despite the circumstances.”

Kommersant describes Raven Russia as the country’s largest owner of warehouse real estate.