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Fortum has sent notices of dispute to the Russian Federation due to the violations of international investment treaty protection

13 July 2023, 16:45 EEST



Fortum has sent notices of dispute in order to protect its legal position and shareholder interests following the Russian Federation’s violations of its investment treaty obligations under the Bilateral Investment Treaties that Russia concluded with the Netherlands and Sweden.

These notices of dispute are the first step required in the arbitration proceedings which are expected to be initiated at the end 2023. Fortum will seek compensation for the value of its shares in PAO Fortum and its investments in Russia, amounting to several billions of euros.

The dispute stems from the hostile actions taken by the Russian Federation which have culminated with Presidential Decree No. 302. The decree was issued on 25 April, after which the Russian authorities deprived Fortum of its shareholder rights by seizing control of Fortum’s assets in Russia and caused the dismissal of PAO Fortum’s CEO.

As Fortum disclosed in its first quarter results in May, the Russia segment will be deconsolidated and reported as discontinued operations in the second quarter of 2023, due to the loss of control of the Russian operations.

Fortum will continue to take all necessary steps to protect its investments and rights

Fortum Corporation

Further information:

Fortum News Desk tel. +358 40 198 2843, newsdesk [at] fortum [dot] com

11 May 2023: Inside infor­mation: Fortum to fully write down its Russian assets and decon­sol­idate the Russia segment – publishes restated comparison figures

5 May 2023: Fortum has formally notified it objects to unlawful seizure of Russian subsidiary

26 April 2023: Russian subsidiary PAO Fortum’s CEO replaced – confirmation of temporary asset management by Russia

26 April 2023: Inside information: Russia has issued new presidential decree with implications for Fortum’s assets