Fortum CEO still allows sale of assets in Russia
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The Finnish energy corporation Fortum still theoretically allows the sale of its business in Russia, but this process has been complicated by a change in management. This was announced by the President and CEO of the company Markus Rauramo at a teleconference with investors.
“First, we strongly object to what the Russian government has done. We don’t see any reason for this… Can we sell? In theory, we can, but a change in management in Russian assets complicates this process,” he said (quote according to RIA Novosti).
Earlier today it became known that Fortum deconsolidates the Russian segment of the business and will fully write off local assets in the amount of about 1.7 billion euros. According to the company, the net cash loss from investments in Russia, acquisitions of enterprises and dividends amounted to 2 billion euros. Despite this, the financial position of the entire group “remains strong,” Rauramo said, stressing that the Russian Federation has ceased to be “part of the future” of the company since the spring of 2022.
On April 25, Russian President Vladimir Putin signed a decree on a mechanism for introducing temporary management of foreign assets in Russia. According to the document, the external management of the Federal Property Management Agency was introduced in relation to the Russian subsidiaries of the large energy companies Fortum (Finland) and Unipro (Germany). Fortum disagreed with this decision and stated its intention to take “necessary measures to protect its rights within the framework of relevant international law.”
After the introduction of external management, Unipro and Fortum promptly changed management. The Board of Directors of Fortum decided to appoint the new CEO of the chief power engineer of Bashneft-Dobycha (part of theRosneft”) Vyacheslav Kozhevnikov. Vasily Nikonov, head of the energy department of Rosneft, became the acting general director of Unipro.
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