FORTUM CORPORATION PRESS RELEASE 27 FEBRUARY 2024
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.
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.
The dispute stems from the hostile actions taken by the Russian Federation which culminated with the Presidential Decree No. 302 issued on 25 April 2023, whereby the Russian authorities seized control of Fortum’s assets in Russia and deprived Fortum of its shareholder rights.
The expropriation of the Russian assets triggered a full financial deconsolidation and impairment of those assets, as reported in Fortum’s second quarter 2023 results. Subsequently, the Russian assets were fully separated from Fortum, and the new management put in place by the Russian Government renamed PAO Fortum as Forward Energo.
Fortum will continue to take all necessary steps to protect its investments and rights.
Fortum Corporation
Communications
Further information:
Fortum News Desk tel. +358 40 198 2843, newsdesk [at] fortum [dot] com (newsdesk[at]fortum[dot]com)
Stock exchange release 11 May 2023: Inside information: Fortum to fully write down its Russian assets and deconsolidate the Russia segment – publishes restated comparison figures
Online news 13 July 2023: Fortum has sent notices of dispute to the Russian Federation due to the violations of international investment treaty protection
Fortum's exit from the Russian market
Fortum
Fortum is a Nordic energy company. Our purpose is to power a world where people, businesses and nature thrive together. We are one of the cleanest energy producers in Europe and our actions are guided by our ambitious environmental targets. We generate and deliver clean energy reliably and help industries to decarbonise their processes and grow. Our core operations in the Nordics comprise of efficient, CO2-free power generation as well as reliable supply of electricity and district heat to private and business customers. For our ~5 000 employees, we commit to be a safe, and inspiring workplace. Fortum's share is listed on Nasdaq Helsinki. fortum.com