TUI Travel has announced completion of a deal with Russian investment company S-Group Capital Management in a bid to increase its Russian and Ukraine presence.

Chief Executive of TUI Travel, Peter Long was delighted to be the first major international tour operator to venture into the Russian and CIS (Commonwealth of Independent States) market and was looking forward to combining the specialist local knowledge of the S-Group with TUI Travels expert travel experience.

Managing partner of S-Group, Vladimir Yakushev was just as pleased to be associated with the leading European tour operator, stating he was “excited about the growth potential in the tourism markets in Russia and CIS”.

TUI Travels share of the new venture is 49% and estimated to be worth around £13.5m, plus a 75% stake in the Russian based VKO Group and also in the Ukrainian Voyage Kiev. They have also signed a letter of intent with the Moscow based company Mostravel, specialists in holidays to Turkey and Egypt.

Long concluded that “The agreements with VKO, Voyage, Kiev and Mostravel will provide us with the scale and expertise to make a large impact on these markets”.