According to the company’s website news release on April 26, 2023, Russia has issued a new presidential decree which enables the authorities to introduce temporary asset management to assets owned by certain foreign entities in Russia. At this point Fortum has not received official confirmation from the Russian authorities and the company is currently investigating the situation.
According to a press release by the Russian Federal Agency for State Property Management, Rosimushchestvo, it has been appointed as an interim asset manager, which exercises the powers of the owner, but has no right to dispose of the property. Fortum’s current understanding is that the new decree does not affect the title (registered ownership) of the assets and companies in Russia. However, it remains unclear how this affects e.g. Fortum’s Russian operations or the ongoing divestment process.
In the decree, temporary management was introduced in relation to Fortum’s shares in the Russian subsidiary PAO Fortum (Fortum JSC). The book value of Fortum’s holdings (including holdings in TGC-1) in Russia was EUR 1.7 billion as of 31 December 2022.
Fortum will publish further confirmed relevant information once available.
Fortum Corporation
Ingela Ulfves
Vice President, Investor relations and Financial Communications
Further information:
Investors and analysts:
Ingela Ulfves, Vice President, Investor Relations and Financial Communications, tel. +358 40 515 1531
Rauno Tiihonen, Manager, Investor Relations, tel. +358 10 453 6150
Media:
Fortum News Desk, tel. +358 40 198 2843
Distribution:
Nasdaq Helsinki
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