Moscow Domodedovo airport is to be acquired by an entity linked to the Russian capital’s rival Sheremetyevo airport, after being put up for auction.

Sheremetyevo airport’s operator states that it has “won the auction” for Domodedovo, having participated through its wholly-owned subsidiary Perspektiva.

The general director of Sheremetyevo airport, Mikhail Vasilenko, says the acquisition is a “business project aimed at improving the health of an important part of the Moscow air hub”.

But he outlines that Domodedovo – being acquired through Sheremetyevo’s own funds, “without borrowing” – presents a number of issues.

“Domodedovo airport is an extremely complex facility with chronic problems, high risks, a significant debt burden, and losses,” says Vasilenko.

He states that there will be “guarantees” of stable operation, wages and job security for the airport’s personnel.

Business newspaper Vedomosti says Domodedovo – which had an initial asking price of Rb132 billion ($1.68 billion) – has been sold for just Rb66 billion. The auction was originally set to take place on 20 January but was declared void, according to the paper.

Domodedovo Airport was transferred to the Russian government in June last year, following a legal dispute with former owner Dmitry Kamenshchik.