- January 22, 2025
- 3:51 pm
- Israel
How indicates TASS, in 2024 legal entities of the largest Russian hotel chain Azimut was taken over by a subsidiary Rosimushchestvo (state company of the Russian Federation) — JSC “Management Company”.
Russia Today (RT), the main mouthpiece of Russian propaganda abroad, January 22, 2025, proudly trumpeted it to the whole worldthat “presence on the international market expands the largest Russian hotel chain AZIMUT Hotels, opening two new hotels in Israel” – “This step demonstrates the desire of AZIMUT Hotels to strengthen its position not only in the Russian, but also in the international hospitality market.”
Well damn…..
They are probably preparing for a boom in Russian tourists vacationing from the so-called “SVO”, which Israeli Ministry of Tourism invites with 50% bonuses.
Russian businesses, including Azimut Hotels, pay taxes to the Russian budget, a significant part of which is aimed at financing the war against Ukraine. For Israel, this creates reputational risks, turning the country into a potential platform for circumventing sanctions, which is contrary to moral values and could affect its relations with international allies.
Russian hotel chain in Israel: a new reality or a strategic maneuver?
On January 22, 2025, it became known that the largest Russian hotel chain Azimut Hotels plans to open two properties in Israel – in Tel Aviv and Jerusalem. According to the general director of the company Maxim Brodovsky for RBCthe first hotel should begin welcoming guests by mid-2025.
Brodovsky clarified what's in the projects funds from the sale of European assets were invested in Israel (in 2023, the network decided to cease its business in Europe. – sanctions for the invasion of Ukraine – ed.)
“In recent years, the strategy of Russia’s largest hotel chain, Azimut Hotels, has changed frequently “as the world has changed,” he added.
“We are ready for development everywhere,” assures Brodovsky.
Azimut is also “looking closely” at Crimea, says Brodovsky: “If there are interesting proposals, then we, of course, will consider them.” (offers will be from Ukrainian drones – ed.)
This event caused a strong reaction, because we are talking not only about business, but also about political consequences. Azimut Hotels was forced to leave the European market due to international sanctions imposed on Russia after the start of its war of aggression against Ukraine. Now the company is looking for new ways to stay afloat.
What is known about Azimut Hotels' plans?
Main details of the project:
- Locations: Tel Aviv and Jerusalem.
- Number of rooms: about 120 in each hotel.
- Investments: the exact amount is not disclosed.
- Opening date: the first hotel is planned for mid-2025.
Why Israel?
Azimut Hotels management says Israel has become a new strategic destination due to the country's high popularity among Russian tourists. However, statistics show a decrease in tourist flow.
| Year | Number of trips by Russians to Israel | Share of the total flow of foreign tourists |
|---|---|---|
| 2019 | 286.8 thousand | — |
| 2023 | 93.7 thousand | 7.5% |
| 2024 | 72.6 thousand | 7.5% |
Despite this, the company is targeting religious tourism, business travel and independent travelers, noting that “people-to-people relationships often remain good despite geopolitical challenges.”
Public reaction: financial and political aspects
1. Attempt to circumvent sanctions:
After the introduction of tough sanctions, it became more difficult for Russian companies to operate in international markets. The departure of Azimut Hotels from Europe was a consequence of the sanctions policy. An attempt to gain a foothold in Israel looks like a strategic move to maintain business.
2. Political component:
Many see double standards in this step. Israel, while condemning Russia's actions in Ukraine, allows Russian companies to conduct business on its territory.
3. Financing aggression:
The question arises: will taxes paid by Azimut Hotels in Russia be used to finance military action in Ukraine?
Challenges for Israel
The decision to allow the Russian hotel chain into the market has raised concerns. Israel risks becoming a haven for businesses seeking to circumvent sanctions.
| Call | Description |
|---|---|
| Political risks | Israel may find itself at the center of international criticism. |
| Economic consequences | Question about sources of financing. |
| Ethical issues | Support for businesses related to aggression. |
Conclusion
Azimut Hotels' plans to enter the Israeli market raise many questions. Is this a move dictated by economic considerations, or an attempt to circumvent sanctions and strengthen the international presence?
As always, NAnews – Israel News will monitor developments and provide its readers with the most up-to-date information on the impact of international processes on life in Israel.
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