Russian energy service asset of Fortum transfers to temporary management of Federal Property Agency - presidential decree

MOSCOW. Aug 25 (Interfax) - The Russian energy service asset of Finland's Fortum, JSC Chelyabenergoremont, has been transferred to the temporary management of the Federal Property Management Agency (Rosimuschestvo), with the corresponding presidential decree published on Monday.

A total of 314.9 million ordinary shares in JSC Chelyabenergoremont, which is 100% of the company's authorized charter capital, are being transferred to Rosimuschestvo. Fortum was the sole shareholder in Chelyabenergoremont as at the end of 2024, according to the company's report.

Chelyabenergoremont's main activity is equipment repair and maintenance, keeping power plants operational and manufacturing spare parts for power plants. Sales revenue under Russian Accounting Standards was 1.95 billion rubles net profit 10.62 million rubles in 2024.

Fortum was one of the largest foreign investors in Russia's electric power industry. The Finnish concern in Russia owns 98.23% of PJSC Forward Energo, which has been under the management of Russia's Federal Property Management Agency since April 2023; and around 30% of PJSC TGK-1 , whose principal shareholder is Gazprom Energoholding. Fortum was also one of the largest investors in Russian wind power.

Fortum decided in 2023 to write off its Russian assets completely and deconsolidate them in its financial statements. Fortum later said it no longer operated in Russia and did not plan to return to the country. The company intends to resume the process of selling assets as a top priority option as soon as it becomes possible, it said.

Fortum is currently involved in two more Russia-related lawsuits. The first was filed against the country seeking to compensate for investments and the value of shares in Forward Energo. The second concerns intra-group loans worth about 600 million euros issued to the Russian subsidiary.