Dailymaverick logo

Business Maverick

This article is more than a year old

Business Maverick

Airports Company SA moves to bypass Western sanctions so it can refuel Russian planes

The move by Airports Company South Africa follows two incidents last year where Western oil companies refused to refuel Russian aircraft in Johannesburg and Cape Town.
Airports Company SA moves to bypass Western sanctions so it can refuel Russian planes

Airports Company South Africa (Acsa) is changing operations at its airports to ensure that Russian aircraft – which are sanctioned by Western governments – can still refuel in this country.

This is in response to two incidents last year where Russian aircraft which landed at OR Tambo International Airport in Johannesburg and Cape Town International Airport could not refuel because of Western sanctions.

Acsa CEO Mpumi Mpofu told Parliament’s Transport Portfolio Committee on Tuesday that, historically, Acsa did not supply fuel to aircraft. Refuelling and providing other supplies was contracted out to oil companies and refuelling and “through-putting” companies. They leased fuel hydrants and tanks from Acsa.

During the two incidents when Russian aircraft landed last year, “the fuel consortium and through-putters could not refuel the aircraft, citing sanctions imposed by their countries of origin and their own internal policies”, she said.

Independent operating company


So now Acsa was planning to separate the oil companies from the refuellers and “through-putters” by creating its own independent refuelling and through-putting company. The oil companies would only provide the fuel, and the new independent operating company would do the refuelling and decide which aircraft could be refuelled.

“Acsa will separate the two components of fuel supply process at the airport, operation (fuel tanks, fuel hydrant, ownership of movable into-plane equipment), and thru-putting (supply of jet fuel),” Mpofu’s Powerpoint presentation to the committee said. 

“Acsa will appoint an operator and the oil companies will only be able to supply the jet fuel.

“The operator will invest in the movable into-plane equipment and operate the tanks and fuel hydrant on a fee basis to the oil companies in fulfilment of their contracts with airlines.

“Both the operator and through-putter arrangements will allow Acsa an opportunity to introduce meaningful transformation of the space.

“Refusal by Fuel Consortium and/or Through-Putters to refuel aircraft from sanction countries will be averted.”

It would give Acsa better control of the assets it owned and enable it to better execute its legal mandate to supply fuel across its network, he said in the presentation.

Interim arrangement


Mpofu said an interim arrangement was being negotiated with the fuel supply operators to allow Acsa to put out tenders for the new operator. 

With the expiry of the contract at the end of September 2022, an interim arrangement has been negotiated with the fuel supply operators to allow the conclusion of Acsa supply chain processes to go out on tender. 

Giving the refuel and through-putting contract to a new independent operator would “deal with a scenario where a sanctioned friend of the South African government needs servicing and refuelling”, Mpofu’s Powerpoint presentation said.

Oddly, that section of the Powerpoint presentation is titled, “Refusal of oil companies to fuel Russia and Ukrainian aircraft”. There is no mention in the presentation of any incident where oil companies refused to refuel a Ukrainian aircraft.

Visit Daily Maverick’s home page for more news, analysis and investigations

ANC MPs were incensed by the refusal of international oil companies to refuel the Russian aircraft last year and had been pushing hard for Acsa to change the arrangements at airports to allow Russian aircraft to be refuelled.

Acsa’s announcement coincides with a controversial joint maritime exercise involving the South African, Russian and Chinese navies off the KwaZulu-Natal coast, which has prompted considerable criticism from Western governments that South Africa has abandoned its proclaimed “non-aligned” stance on Russia’s war against Ukraine.

The naval drill, named Exercise Mosi II, will be under way on Friday, which marks the first anniversary of Russia’s invasion of Ukraine.

Western diplomats and others have said this timing is unfortunate, suggesting not only that South Africa is helping to develop Russia’s naval warfare skills through the joint exercise, but is also being perceived as joining Russia in celebrating its invasion of Ukraine. DM

Comments (10)

paulvonwiese Feb 27, 2023, 11:33 AM

So, now we assist those who bomb schools and hospitals, a sad development for South Africa!

Johan Buys Feb 23, 2023, 05:43 PM

Similar to how many oligarch yachts and jets disappeared into Israel, the new destination for the super-wealthy russians, courtesy of a government that does not vote against russia or implement sanctions. Basically we are in an exclusive club of russia, china, belarus, north korea, india and a host of stans.

Carsten Rasch Feb 23, 2023, 07:42 AM

Acsa is yet another funding vehicle for the criminal state. Are you aware that roughly half of your plane ticket cost is actually fees imposed by Acsa?

Dhasagan Pillay Feb 22, 2023, 02:14 PM

It would be more relevant and advisable if ACSA were to fix the airports. OR Tambo is currently frustrating passengers with broken toilets, non-working travellators and parking boom gates. But hey, why stay in your lane when you can ensure further reputational damage to the tourism industry.

Oblivious Traveler Feb 22, 2023, 01:55 PM

Bye bye ACSA. Another business decision based on political considerations. It does not make any business sense. Ideology over economy ... it never works. Ask the old Soviet Union. O no, you cannot, they don't exist anymore.

owen steyn Feb 22, 2023, 01:37 PM

Now the world can see the ANC for what it really is......a two headed snake with a forked tongue.

Maurene Medway Feb 22, 2023, 01:03 PM

This is sanctions busting. SA could pay dearly for this shortsighted action by our useless government.

Mike Blackburn Feb 22, 2023, 12:17 PM

Sanctions busting aside, the most worrying aspect of this project is that the fueling equipment will be kept and maintained by ACSA. How long until fuel is contaminated during handling or the equipment falls into disrepair? Currently the oil companies own and maintain this equipment and have an interest in ensuring that it is maintained. ACSA wont give a fig. Nothing good can come of this unless you’re an ACSA tenderpreneur.

roland rink Feb 22, 2023, 11:53 AM

If you sleep with dogs you always end up catching their fleas..........

Peter Hartley Feb 22, 2023, 11:03 AM

I just hope that the citizens of this country eventually see the light and vote out the ANC. How can any country support Russia's aggression against Ukraine. Despicable.