All news

Fortum notifies Russia of its objection to transfer of shares under temporary management

Fortum also noted that its power plants in Russia are the most modern and efficient in the market, and maintained to high industry standards

MOSCOW, May 5. /TASS/. The Finnish company Fortum strongly objects the transfer of shares of its subsidiary in Russia under the temporary management of the Federal Agency for State Property Management, the company said in a press release on Friday.

"Fortum has formally notified the administration of the President of the Russian Federation that it strongly objects the Decree No. 302 of 25 April 2023, based on which the Russian State Property Management, Rosimushchestvo, has seized Fortum’s Russian subsidiary PAO Fortum. <...> Fortum considers Russia’s actions to be a crude violation of international law and of Fortum’s rights as a foreign investor. Fortum is preparing to take all necessary measures to protect its rights under relevant international legislation," the company stressed.

Fortum also noted that its power plants in Russia are the most modern and efficient in the market, and maintained to high industry standards.

On April 25, Russian President Vladimir Putin signed a decree establishing administrative receivership by Russian Federal Agency for State Property Management over 83.73% stake in Unipro Russia and over 98% in Fortum’s Russian division. The move was made in response to some states’ unfriendly actions towards Russia.

Later, the boards of directors of Unipro and Fortum re-elected the general directors of energy companies at the request of the Federal Agency for State Property Management.