Allwyn Parent KKGC Cuts Ties with Russia

KKGC, an investment fund owned by Czech billionaire Karel Komárek, announced its intentions to cut its ties with Russian energy corporation Gazprom. This would mean that Allwyn, one of KKGC’s subsidiaries, will no longer have indirect ties with Russia.

Allwyn took over the UK National Lottery recently after being selected as Camelot’s successor by the United Kingdom’s Gambling Commission in 2022. This triggered an extensive legal conflict between Allwyn and Camelot that was eventually solved. In the end, Allwyn opted to acquire Camelot and get in charge of The National Lottery sooner.

A major critique against Allwyn was KKGC’s ties with Russia. Some critics were uneasy about the implications of these connections, considering the ongoing invasion of Ukraine and Russia’s unwillingness to back down. This question was also brought up in parliament when the UKGC decided to award Allwyn the National Lottery contract.

However, KKGC has now opted to sever its relationship with Gazprom, easing off the aforementioned concerns.

MND In Full Control of Moravia Gas Storage

On May 28, KKGC announced that its MND subsidiary, which owns Moravia Gas Storage, has decided to purchase its remaining stake from Gazprom. MND originally operated Moravia Gas Storage as a joint venture with Gazprom.

Eventually, however, Gazprom’s stake was reduced to 2.67%. MND has now decided to increase its shareholding in MGS from 97.37% to 100%. This move was decided at the recent MGS General Meeting and duly entered in the Czech Commercial Register on May 25.

As a result, Gazprom will no longer have a shareholding in the company.

MND, as the majority shareholder, already had full shareholding, management, and operational control of MGS. With this decision, Gazprom Export ceases to be a shareholder in MGS.

KKGC statement

The move is set to be completed by the end of this month.

In the meantime, the UKGC faces a lawsuit from Northern & Shell, which was not amused by the regulator’s decision to award The National Lottery license to Allwyn. Northern & Shell argued that the procurement process in 2022 was controversial and is claiming £20 million ($25.5 million) in damages.

In addition to Camelot and Northern & Shell, IGT also considered suing the UKGC over alleged favoritism. However, only Northern & Shell’s challenge still stands.

Allwyn representatives are set to appear in court today.