Due to the sanctions applied by the European Union (EU), the tour operator SIA “Baltic Baltics”, which is the TUI franchisee in the Baltics, has to cancel the planned trips until a solution is found, the representatives of the Consumer Rights Protection Center (CRPC) informed.
At the same time, CRPC points out that TT Baltics must also stop offering and selling new services.
The tour operator is obliged to inform the travelers about the canceled trips, while the tour operator is obliged to return the consumers in the trips in accordance with the concluded agreements, informs the CRPC.
Representatives of the PATC also emphasize that the CRPC, in cooperation with other involved parties, will take the necessary actions and monitor the successful return of travelers on their travels, as well as the return of money paid to travelers whose travels have been canceled.
Given the difficult situation, CRPC urges travelers to be patient with the refund. In case of questions and uncertainties, CRPC invites you to contact “TT Baltics”.
At the same time, the CRPC invites other tourism service providers to get acquainted with the sanctions applied in the EU and to assess their possible impact on the activities of tourism service providers.
LETA has already reported that in connection with Russia’s aggression against Ukraine, the EU has imposed sanctions on oligarchs and propagandists close to Russian President Vladimir Putin, including Russian billionaire Alexei Mordashov, the only real beneficiary of TT Baltics.
Mordashov, who also owns a controlling stake in Russia’s second-largest steel company, Severstal, is a major shareholder in FDI because his indirectly controlled company, Unifirm Ltd. owns 34% of FDI shares.
The purpose of the EU sanctions is to prevent Mordashov from disposing of his FDI shares or making a return on his investment in the company, according to the FDI statement.
In a statement issued at the same time, Mordashov said he had “absolutely nothing to do with the current geopolitical tensions” and did not understand why the EU had imposed sanctions on him.
In 2020, TT Baltics had a turnover of 8.101 million euros, which is 4.6 times less than a year earlier, while the company’s loss increased by 5.8% to 2.204 million euros.
According to the company’s annual management report, TT Baltics developed rapidly before 2020, but in 2020 the company’s operations were negatively affected by the Covid-19 pandemic. TT Baltics has reduced its headcount and other expenses, as well as received payment extensions. In 2020, the company had 20 employees, which is 10 employees less than a year earlier.
TT Baltics started operating in the Baltics in the autumn of 2018. The company “TT Baltics” was registered in June 2018 and its share capital is 282,800 euros. The company is owned by Russian-registered KN-Holding, but its real beneficiary is Mordashov.
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