12 May 2022 10:21

Fortum to sell Russian assets, including Unipro, stop using brand in Russia

MOSCOW. May 12 (Interfax) - Fortum is planning to stop doing business in Russia, the Finnish energy company said in a report.

In addition to the previously announced suspension of new investment and financing for its Russian subsidiaries, Fortum is "preparing for a controlled exit from the Russian market," company CEO Markus Rauramo said in the report.

"As the preferred path, this decision includes a potential divestment of Fortum's Russian operations. The divestment process for Uniper's Russian subsidiary Unipro is also expected to be resumed as soon as possible," he said. These processes could take some time and require regulatory approval, the company said.

Nonetheless, the company has decided to stop using the Fortum brand in Russia, Rauramo said.

Fortum has also halted electricity imports from Russia along the 110-kilovolt Svetogorsk - Imatra line. The launch of the Olkiluoto 3 Nuclear Power Plant will lower Finland's overall dependence on electricity imports. Fuel for the NPP comes from Western suppliers, the company said.

Fortum's planned exit from charter capital will not affect company activities or the work of staff, will not impact the company's stable financial and technological position, and will provide for the further development of the Russian subdivision. The Russian company is operationally and financially independent and is continuing normal work and to fulfill the obligations it has taken on, PJSC Fortum CEO Alexander Chuvayev said.

Changes with respect to cessation of the use of the Fortum brand will be reported additionally as the relevant decisions are made, Chuvayev said.

Fortum owns 98.23% of PJSC Fortum, formerly TCG-10, in Russia and around 30% of PAO TGC-1, whose main shareholder is Gazprom Energoholding. Fortum also owns 73.4% of Uniper, which itself owns 83.73% of its Russian subsidiary Unipro. The company also participates in a number of renewable energy projects. It has 7,000 employees in Russia.

Fortum earlier reported 2.1 billion euros in losses connected to the company's activities in Russia in the first quarter of 2022.