By KYIV. May 11 (Interfax-Ukraine) – Fortum has decided to completely write off its Russian assets and deconsolidate them in its financial statements, the Finnish energy company said in its report for the first quarter of 2023.
The write-off will total EUR 1.7 billion. Fortum’s assets stood at EUR 9.8 billion at the end of March 2023, the company said.
The Russian president issued a decree at the end of April to introduce temporary management of Fortum’s and Uniper’s Russian assets. The decree applies to 83.73% of shares in PJSC Unipro and 98.23% of shares in PJSC Fortum. The Federal Property Agency was designated the temporary manager.
Fortum said later that it considered Russia’s actions to be a “crude violation of international law and of Fortum’s rights as a foreign investor” and was “preparing to take all necessary measures to protect its rights under relevant international legislation.”
Fortum, one of the largest foreign investors in Russia’s electricity sector, owns 98.23% of PJSC Fortum and about 30% of PJSC TGC-1, the principal shareholder of which is Gazprom Energoholding (GEH). The Finnish company was also one of the largest investors in Russian wind power.
Fortum CEO Markus Rauramo said in April this year that the company was continuing the process of exiting Russia and saw interest in its assets both in Russia and other countries.
