ENERGO: Fortum takes €3.5bn impairment hit in Russia

Finnish renewable major Fortum booked a €1.7bn impairment charge and deconsolidation-related translation differences of €1.9bn in the second quarter, Tass reported citing the reports of the company.

To remind, last month President Vladimir Putin signed a decree on subjecting foreign assets to mandatory “temporary management” in case of the seizure of any other private or public assets by the US or their allies, with the assets of Finnish and German energy majors Fortum and Uniper being the first to be arrested. 

"As Fortum communicated on 26 April, the Russian authorities have caused the change to Fortum’s Russian subsidiary PAO Fortum’s CEO and seized control of Fortum’s assets based on a Presidential decree (No. 302 of 25 April, 2023). Russia’s actions mark a point of no return for Fortum, and de facto loss of control of PAO Fortum triggers a full deconsolidation and impairments of the company’s Russian assets," the statement said.