HELSINKI May 5 . Finnish Energy Fortum Corporation notified Moscow of its disagreement with the transfer of its Russian «daughter» — PJSC «Fortum» — to the temporary administration of the Federal Property Management Agency and is preparing to defend its rights, the company said on Friday.
Russian President Vladimir Putin last week signed a decree responding to the seizure of Russian assets abroad and the restriction of property rights. The decree approves a list of foreign assets that, as a response, are transferred to the temporary administration of the Federal Property Management Agency. It included 83.73% of Unipro shares indirectly owned by the German government (through Uniper) and 98.23% of Fortum owned by the Finnish concern Fortum. But the list can be expanded.
«»Fortum has officially notified the administration of the President of the Russian Federation that it strongly objects to Decree No. 302 of April 25, 2023, on the basis of which the Federal Property Management Agency seized the Russian subsidiary of Fortum, PJSC Fortum, the report says.
By its actions, the Russian Federation has deprived Fortum of its shareholder rights, according to the company.
«Fortum's power plants in Russia are the most modern and efficient on the market and are serviced in accordance with high industry standards. Fortum considers Russia's actions gross violation of international law and the rights of Fortum as a foreign investor. Fortum is preparing to take all necessary measures to protect its rights in accordance with international law,» the Finnish company reports.
Fortum owns 98.23% in PJSC Fortum in Russia (former TGC-10) and about 30% in TGC-1 PJSC (the main shareholder is Gazprom Energoholding). The company has also been one of the largest investors in wind energy in Russia. According to Fortum's financial statements, 2,724 people worked in the Russian division of the company at the end of 2022.