Investor news

Fortum and RUSNANO establish investment partnership to create possibility to capture CSA wind opportunity in Russia

27 April 2017, 8:45 EEST


Fortum and RUSNANO, a Russian state-owned development company, have today
agreed to sign a 50/50 investment partnership in order to secure the
possibility of a Russian Capacity Supply Agreement (CSA) wind portfolio in
Russia. Further progress in the matter is still dependent on several factors
such as the Russian prerequisite for domestic production of wind power
generating components as well as auction outcome.

Fortum’s equity stake in the joint venture totals a maximum of RUB 15 billion
(currently approximately EUR 240 million). The amount is invested over time
(within approximately 5 years) as it is subject to positive investment
decisions. Separate investment decisions will be made on a case-by-case basis
for each possible investment. The projects will be financed with the equity
invested to the joint venture and local non-recourse debt.

As earlier communicated at Fortum’s Capital Markets Day held in November 2016,
Fortum's long-term ambition is to have approximately 500 megawatts (MW) of wind
capacity in Russia. The goal supports Fortum's strategy to increase the share
of CO2-free generation capacity and is in line with the company's overall
target of creating a gigawatt-scale wind and solar portfolio. In 2017, Fortum
is commissioning 35 MW of wind capacity in Russia, receiving CSA payments for a
guaranteed period of 15 years.

Fortum Corporation

Sophie Jolly, Vice President, Investor Relations and Financial Communications

Additional information:

Investor Relations & Financial Communications, Sophie Jolly, tel. +358 10 453
2552, Rauno Tiihonen, tel. +358 10 453 6150, Måns Holmberg, tel. +358 44 518
1518, Pirjo Lifländer +358 40 643 3317, and investors [at] fortum [dot] com


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Fortum is a leading clean-energy company that provides its customers with
electricity, heating and cooling as well as smart solutions to improve resource
efficiency. We want to engage our customers and society to join the change for
a cleaner world. We employ some 8,000 professionals in the Nordic and Baltic
countries, Russia, Poland and India, and 62% of our electricity generation is
CO2 free. In 2016, our sales were EUR 3.6 billion. Fortum's share is listed on
Nasdaq Helsinki.