Finnish energy concern Fortum will write off Russian assets for 1.7 billion euros

The Finnish energy concern Fortum announced a decision to completely write off its Russian assets and deconsolidate them in the accounts. This is stated in a statement on the company’s website.

Photo: focus.ua 0

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“Since the spring of last year, we have consistently tried to leave the Russian market and unsuccessfully applied for permission to sell deals to both Russian and international buyers. Justifying the seizure of our assets with the need to protect Russia’s energy security is just a cover,” said Fortum President and CEO Markus Rauramo.

Fortum noted that during its work in the Russian Federation, it invested about 6 billion euros in local assets. At the same time, the company estimated a net monetary loss, including investments in the purchase of Russian enterprises, dividends and financing of almost 2 billion euros. The written-off assets will be reflected in the report for the second quarter of 2023.

Let’s remind

In April, Russian President Vladimir Putin signed a decree on the introduction of temporary management of the property of residents of countries that Russia itself calls “unfriendly”, in the event that Russia or Russian individuals or legal entities lose their property in these countries.

By his decree, Putin introduced temporary management over the Russian assets of Fortum and Uniper. 83.73% of the shares of PJSC “Unipro” and 98.23% of the shares of PJSC “Fortum” came under the effect of the decree.

Fortum called Russia’s actions a gross violation of international law and the company’s rights as a foreign shareholder and stated that it was preparing to take all necessary measures to protect its interests within the framework of international law.

It is worth noting that Fortum was one of the largest foreign investors in the Russian electricity and wind power industry.

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Source: Ministry of Finance

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