ENERGO: In blow to green energy, Enel is next to exit Russia

Italian utility major Enel is preparing to exit Russia "in a matter of months", according to the announcement of its CEO, Francesco Starace. Kommersant daily reported citing unnamed sources that Enel Russia is not currently in sale negotiations with large Russian utility peers.

Enel Russia already said it had abandoned the construction of the Rodnikovski wind farm, as well as its second wind farm in the Kola.

As suggested by bne IntelliNews, Western sanctions and a sharp deterioration in the operating environment are likely to wreck Russia's ambitious green agenda that was set to be launched in 2022.

ESG incentives for foreign investors and compliance with cross-border carbon taxes could become largely irrelevant. At the same time, renewable generation capacities in Russia are mostly developed by foreign utility players, such as Enel, Unipro, Fortum and others.

Previously Uniper said it had stopped all investments into Russia and would move on with the process of selling Unipro once it is possible. Several other companies with considerable renewable energy interests are halting new commercial activity in Russia over the "indefensible war" being waged by Moscow in Ukraine.