Fortum opposed the transfer of its assets to temporary management

The decree on the mechanism for introducing temporary management of foreign assets in Russia is a “violation of investor rights”, Fortum has already officially notified the Russian Federation of its objection to this document. This was reported by the press service of the Finnish energy company.

“The actions of the Russian Federation led to the dismissal of the CEO of PJSC Fortum and deprived Fortum of its shareholder rights,” the statement said.

Fortum considered the signing of the decree “a gross violation of international law”, as well as the company’s rights as a foreign investor. In this regard, Fortum will take all necessary measures to protect, the company concluded.

The press service noted that Fortum is now analyzing the impact of Russia’s actions on the company’s activities. More details will be published on May 11 in the 1Q 2023 financial report.

April 25 Russian President Vladimir Putin signed a decree on the mechanism for introducing temporary management of foreign assets in Russia, which introduces external management by the Federal Property Management Agency in relation to the Russian subsidiaries of the energy companies Fortum (Finland) and Unipro (Germany).

At the same time, the decree does not deal with “property issues and does not deprive the owners of their assets,” follows from the document.

The Federal Property Management Agency explained that external management means depriving companies of the right to make management decisions in favor of the department. The measure is temporary.

The next day at both companies happened change of general directors. In Unipro, this position was taken by the head of the energy department of Rosneft, Vasily Nikonov, and in Fortum, the chief power engineer of Bashneft-dobycha (part of theRosneft”) Vyacheslav Kozhevnikov.