Travel giant TUI reassures staff over sanctions on Russian billionaire shareholder

Alexey Mordashov is also the largest shareholder of Severstal, Russia’s fourth-biggest steelmaker, and has a fortune of over €22bn

TUI was hit hard in 2020 after the coronavirus all but froze European travel.

European travel giant TUI won’t suffer “any lasting negative consequences” if countries sanctioned Alexey Mordashov, the Russian billionaire who bailed out the German firm when the coronavirus punctured a boom in global travel.

Chief Executive Officer Fritz Joussen made the assurance to staff on Monday, according to a letter seen by Bloomberg News. 

Mr Mordashov, 56, who made his fortune in the steelmaking business, owns over a third of TUI’s stock after pumping cash into the world’s largest tour operator.

EU officials are considering sanctioning Mr Mordashov alongside other tycoons with ties to Russian President Vladimir Putin following the invasion of Ukraine, according to documents. 

The move would build on measures against 23 high-ranking individuals agreed last week that included banking executives, military chiefs, media figures and a top Kremlin official.

TUI was hit hard in 2020 after the coronavirus all but froze European travel, forcing the company to seek state bailouts and emergency loans from creditors, with Mr Mordashov taking part in its capital raises. Mr Mordashov is the largest shareholder of Severstal, Russia’s fourth-biggest steelmaker, and has a fortune of over €22bn, according to Bloomberg.