Tui terminates brand deal with Russian partner

10th Mar 2022 14:47

(Sharecast News) - Tui Group has terminated an agreement allowing its brand to be used by its largest shareholder in Russia, the travel giant said on Thursday.

Tui Russia was established as a joint venture in 2009 between Tui and Severgroup, which is controlled by oligarch Alexei Mordashov.

A major investor in Tui, Mordashov sat on the German holiday firm's supervisory board until he was forced to resign last week, after the European Union added him to the sanctions list.

Tui sold its shares in Tui Russia in March 2021 and no longer has a stake in the business. But Tui Russia is allowed to use the Tui brand in a number of countries, including Russia, Ukraine and Belarus, under a brand licencing agreement.

However, Tui said on Thursday that the licence had been terminated.

Chief executive Fritz Joussen 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 its brand presence."

Tui sold its stake in Tui Russia to KN-Holding, which at that point was controlled by Mordashov's two sons. Since then, however, Mordashov has taken back control of the company.

As at 1445 GMT, Tui's London-listed shares were down 1% at 222.8p.