Adani airports stops handling Russian cargo, say agents

Adani Airports has stopped handling certain Russian-linked cargo at Mumbai airport, citing sanctions-related compliance concerns, triggering a dispute with local representatives of Russian carriers Aeroflot and Volga Dnepr over shipments that had already been positioned at the airport.

In multiple communication to Mumbai airport authorities, Naveen Rao, head of Delmos Aviation, which represents Aeroflot Russian Airlines and Volga Dnepr said that dispute also involves a charter operation at Navi Mumbai Airport by Volga-Dnepr Airlines had where the slot arrangements had initially been confirmed, but was subsequently revoked.

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Adani groups operates eight airports in the country including major gateways like Mumbai, Ahmedabad.

Rao said he was informed by airport officials that the decision was linked to the sanctions imposed on Russia by US Office of Foreign Assets Control (OFAC) sanctions.

Adani airport didn’t respond to queries on the topic but people aware of the development said that the decision was taken after the company raised investment of $ 1 billion through a share sale to investors including US funds managed by BlackRock.

Rao has now written to the Ministry of Civil Aviation asking to step in to resolve the issue.

The Indian government officially maintains trade relations with Russian government and recently signed multiple trade deals on the sidelines of the BRICS summit held in New Delhi last month.

According to the email, about 2.5 tonnes of cargo is currently lying in the airport warehouse, while Delmos is seeking carting for another 12.5 tonnes to build a commercially viable 15-tonne truckload. The cargo has already been waiting for about a week, with demurrage costs accumulating, Rao said.

The dispute centres on whether the sanctions restrictions apply to shipments where the physical movement is undertaken by an Indian logistics company and the shipper and consignee are not themselves sanctioned entities.

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“We also request clarification regarding Russia-related cargo being carried from Mumbai by other international carriers, including Emirates, Turkish Airlines, Ethiopian Airlines and others. If such carriers are permitted to accept and move cargo connected with Russia, we request clarification on the criteria being applied and whether the same criteria are being applied uniformly to all carriers and stakeholders,” said Delmos Aviation’s managing director Dr. Naveen Rao.