The Russian presidency has stated that no decision to nationalize Fortum’s assets in Russia has been made. Dmitry Peskov, the press secretary, conveyed this during a briefing with journalists and emphasized that there is no compensation involved and no move toward nationalization either.
Fortum’s chief executive officer, Markus Rauramo, indicated that while selling assets in Russia cannot be ruled out, the change in management at the Russian subsidiary adds a layer of complexity to any potential sale. This remarks come amid ongoing questions about the future of Fortum’s operations in the country and how any such transition might unfold from a governance and financial standpoint.
On May 11, reports emerged that Fortum had made a decisive move regarding its Russian assets, including a write-off of about 1.7 billion euros tied to the Russian operations. The company noted that approximately 6 billion euros had been invested in assets within Russia during its period of activity, highlighting the scale of exposure and the financial footprint of its local projects. The disclosure aligns with Fortum’s efforts to streamline its global portfolio and reflect on the results of investments in the Russian market over the years.
Earlier discussions had positioned the firm’s strategic posture in a broader context, including how decisions about its Russian business would interact with corporate strategy and international relations. Analysts have explored how such corporate actions might affect Fortum’s overall liquidity, debt profile, and future access to capital for ongoing operations in other regions. While the topic of asset disposition remains sensitive, Fortum has framed its actions as part of a disciplined portfolio review rather than a forceful restructuring of its Russian presence.
Observers note that the evolving management structure within Fortum’s Russian subsidiary could influence negotiations with potential buyers or partners. The company has emphasized that any transition would be handled with careful consideration of governance standards, regulatory requirements, and the interests of stakeholders in both Finland and Russia. As with similar corporate events, market players will be watching for signals regarding timing, valuation, and the potential impact on Fortum’s international credit outlook. [Source attribution: Reuters]