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Finnish Fortum begins arbitration proceedings against Russia

According to the statement, "Fortum will seek compensation for the value of its shares in PAO Fortum and its investments in Russia, amounting to several billions of euros"

HELSINKI, February 27. /TASS/. Finnish energy concern Fortum announced it has started arbitration proceedings against Russia and will seek compensation for its assets.

"Fortum has initiated arbitration proceedings against the Russian Federation and will claim compensation for the unlawful seizure of its assets in order to protect its legal position and shareholder interests. The commencement of arbitration proceedings follows the Russian Federation’s violations of its investment treaty obligations under the Bilateral Investment Treaties that Russia has with the Netherlands and Sweden," the statement said.

According to the company, "In July 2023, Fortum sent notices of dispute to the Russian Federation, which were the first steps required for the arbitration proceedings. The Russian Federation however failed to engage in any settlement discussions with Fortum. Fortum will seek compensation for the value of its shares in PAO Fortum and its investments in Russia, amounting to several billions of euros."

On April 25, Russian President Vladimir Putin signed a decree transferring 83.73% of the shares of Unipro, owned by the German concern Uniper, and 98.23% of the shares of Fortum, owned by the Finnish group Fortum, are transferred to the temporary management of the Federal Property Management Agency. The measure was implemented in reaction to a number of states' hostile acts toward Russia.

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