4 May 2022 15:53

Fortum to write off 2.1 bln euros in losses associated with Russia operations

MOSCOW. May 4 (Interfax) - Finnish energy company Fortum has announced a 2.1 billion euro impairment of assets associated with the company's operations in Russia in Q1 2022, the company said in a statement.

Fortum attributes this to the Russian military operation in Ukraine and related geopolitical tensions, uncertainties and risks.

The above amount includes impairment of 0.3 billion euros for the company's fixed assets and goodwill and about 0.6 billion euros of PJSC Unipro fixed assets (main shareholder - Germany's Uniper, a Fortum member), the energy company said in a statement.

Furthermore, Fortum recorded a 0.2 billion euro loss related to its stake in TGK-1 and renewable energy joint ventures.

Earlier, Fortum also announced the impairment of outstanding receivables from Uniper for the Nord Stream 2 project in the amount of about $1 billion.

The value of net assets in Russia after the impairment amounts to 3.3 billion euros, Fortum said.

Earlier, in its IFRS report, Unipro announced an asset impairment of 19 billion rubles caused by a change in its macroeconomic outlook amid the geopolitical situation. As a result, the company recorded a loss of 7.8 billion rubles in Q1.