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Transfer of Fortum shares under temporary management in line with Russian law — Kremlin

When asked to clarify if other foreign companies in Russia would be placed under Rosimuschestvo’s temporary control, Dmitry Peskov said: "It all depends on the specific situations; each specific case, of course, is considered"

MOSCOW, May 5. /TASS/. The transfer of shares in Finnish company Fortum’s Russian subsidiary to the temporary management of the Russian Federal Property Management Agency (known as Rosimuschestvo) is proceeding in accordance with Russian law and all necessary actions will be continued, Kremlin Spokesman Dmitry Peskov told reporters on Friday.

Earlier, the Finnish energy concern stated that it strongly objected to the transfer of shares in its Russian subsidiary to Rosimuschestvo’s temporary management.

"These actions are primarily driven by the need to protect our own interests amid the steps taken by those countries that are unfriendly toward us. All actions with respect to Fortum are being carried out in accordance with our legislation; they will continue," Peskov said.

When asked to clarify if other foreign companies in Russia would be placed under Rosimuschestvo’s temporary control, the Kremlin spokesman said: "It all depends on the specific situations; each specific case, of course, is considered."

On April 25, Russian President Vladimir Putin signed a decree establishing temporary administrative management by Rosimuschestvo over an 83.73% equity stake in Unipro Russia and over a 98% stake in Fortum’s Russian division. The move was made in response to certain countries’ unfriendly actions toward Russia.

Later, the boards of directors of both Unipro and Fortum reappointed the respective incumbent general directors of the energy companies at Rosimuschestvo’s request.