Unipro and Fortum have changed management

Vasily Nikonov became the acting general director of the Unipro energy company, follows from the data of the Unified State Register of Legal Entities. The leadership was also changed in the Fortum energy company – it was headed by Vyacheslav Kozhevnikov. This happened by decision of the board of directors, it is said in message “Fortum”. Its holding is an initiative of the Federal Property Management Agency, which received blocks of shares in both companies for temporary management, said a Vedomosti source close to the department.

Since 2012, Nikonov has been head of the energy department at Rosneft, and before that, in 2010-2012. Headed the relevant department of the Ministry of Energy. Kozhevnikov holds the position of chief power engineer at Bashneft-Dobycha. Judging by the biography on the website of the Kurultai of Bashkiria, of which Kozhevnikov is a deputy, a significant part of his working biography in recent years is connected with this company.

The appointment of new managers (who, according to Vedomosti, will continue to work in their current positions in their companies) was a “retaliatory measure” against the actions of unfriendly states. The decree, which was signed on the evening of April 25 by Vladimir Putin, allows the introduction of temporary management of foreign assets in the event that Russia, Russian legal entities or individuals are deprived of the right of ownership of property located on the territory of foreign states, as well as in the event of a threat to national, economic, energy and other security countries. Management of foreign assets in case of application of the decree is transferred to the Federal Property Management Agency or another person. How exactly it should be carried out, the document does not say, it is specified that the head of state can make a decision to abandon the interim administration.

The decree signed on April 25 mentions the Russian subsidiaries of the largest energy companies that remained controlled by foreign investors: Fortum (Finland) and Unipro (Germany). Unipro owns 5 TPPs with a total capacity of 11.28 GW (Surgutskaya GRES-2, Berezovskaya, Shaturskaya, Smolenskaya and Yaivinskaya GRES). Electricity generation in 2022 is 53.96 billion kWh. PJSC Fortum mainly includes power plants in Western Siberia and the Urals (ex-TGK-10), as well as 29.5% in TGC-1 (controlling stake – at “Gazprom energy holding). The total capacity of PAO power plants is 4.67 GW, electricity generation is 31.1 billion kWh.

Temporary management of the current decree is introduced in relation to generating assets “of paramount importance for the stable functioning of the Russian energy sector,” the press service of the Federal Property Management Agency reported late on April 25. This will “ensure the uninterrupted operation of companies that are important for the national economy and eliminate the risks of the influence of the political position of a number of unfriendly countries on it” on the security of Russia. At the same time, the decree does not deal with “issues of property and does not deprive the owners of their assets” (this follows from the presidential decree). The procedure, as emphasized by the Federal Property Management Agency, is temporary and means that the original owner no longer has the right to make management decisions.

The presidential decree is a response to the aggressive actions of unfriendly countries, which are aimed at creating a regulatory framework for the actual seizure of Russian assets abroad, Russian presidential spokesman Dmitry Peskov said on April 26. “This initiative mirrors the attitude of Western governments towards foreign assets of Russian companies. This decree does not deal with property issues and does not deprive owners of their assets, because external management is temporary, and the only thing it means is that the original owner no longer has the right to make management decisions and a number of other nuances,” he said.

Prior to this, to deal with foreign assets in Russia on the principle of “tit for tat” and “an eye for an eye” were, respectively, the head VTB Andrey Kostin and Deputy Chairman of the Sobez Dmitry Medvedev. According to the latter, the seizure of property from both citizens and companies is an illegal act. According to media reports, losses from the nationalization of assets in Europe of the two largest Russian energy companies – Gazprom and Rosneft – could amount to more than $22 billion.

In June 2022, the German government decided to take Gazprom Germania GmbH into external management, gaining control over the trading structures and underground storage facilities (UGS) previously owned by Gazprom. In November, the Polish authorities introduced external management of Gazprom’s 48% stake in the EuRoPol GAZ joint venture, the owner of the Polish section of the Yamal-Europe highway.

External management was also introduced in relation to the managing company Novatek Green Energy, the Polish subsidiary of Novatek, which was engaged in the sale of liquefied hydrocarbon gases and liquefied natural gas. Its assets were put up for sale in April, the interim manager Karol Szymanski reported.

In addition, in September 2022, the German government ordered to transfer to the state-owned Federal Network Agency the minority stakes in two refineries owned by Rosneft and a controlling stake (54.17%) in the refinery in Schwedt, which is focused on deliveries through the oil pipeline, for six months. Friendship”. The company challenged the decision to impose external management on Rosneft Deutschland GmbH (RDG) and RN Refining & Marketing GmbH (RNRM), but the court dismissed its claim. Rosneft accounts for about 12% of German oil refining capacity, which “makes it one of the largest oil refining companies in Germany,” Vedomosti wrote.

Bye “Rosneft” challenged the introduction of external management of its assets in Germany, the Bundestag adjusted the energy security law, which allows the sale of a company’s stake in a refinery without nationalization. On April 20, the majority of Bundestag deputies voted for the relevant amendments. This decision opens up the possibility of expropriating Russian assets in Germany, experts interviewed by Vedomosti said, noting the vagueness of the wording of the legislative act.