Fortum’s statement related to the confiscation of Fortum’s Russian subsidiary Chelyabenergoremont

According to Russian media report, the Russian Federation issued a presidential decree enabling the authorities to introduce temporary asset management of JSC Chelyabenergoremont to Russian authorities.

Chelyabenergoremont was part of Fortum’s Russia segment and its main responsibility was to provide power maintenance services to PAO Fortum. This segment was deconsolidated and Fortum’s all assets in Russia were written down in full in 2023.

At this point Fortum has not received official confirmation from the Russian authorities.

Background information:
In 2022, Fortum resolved to exit its Russian operations, with the primary aim to divest its assets. In April 2023, the Russian authorities seized control of Fortum's assets in Russia and deprived Fortum of its shareholder rights. Fortum has since lost all oversight and control over the assets and therefore fully financially impaired and deconsolidated the assets. Fortum is pursuing arbitration against Russia for the unlawful seizure of former PAO Fortum. In addition, court proceedings are ongoing to recover unpaid intercompany loans.

Consequently, Fortum is no longer active in Russia and does not intend to return. When possible and as a primary option, Fortum would continue the divestment process of its Russian assets.