Finnish energy company Futum has announced it is "investigating" the situation regarding its Russian operations after President Vladimir Putin signed a decree allowing for the temporary takeover of the Finnish firm's assets in Russia. The impact on Fortum's Russian activities and the ongoing divestment process remains uncertain.
Fortum, along with its former subsidiary Germany-based Uniper, have become targets of new Russian legislation that grants authority to seize foreign assets from countries deemed "unfriendly and contrary to international law." By the end of 2022, these assets had a book value amounting to €1.7 billion (approximately $1.87 billion).
This move comes as a response to asset freezes by the United States and its allies imposed on two companies owned by Fortum Oyj—the Finnish state-controlled utility—and German utility Uniper SE.
In an official statement released following President Putin's decree, Fortum spokesperson Teemu Jylhä-Ollila said: "We are currently investigating how this temporary takeover affects our operations in Russia and any potential implications for our ongoing divestment process."
Jylhä-Ollila assured stakeholders that they aim to protect their interests while remaining in compliance with all relevant laws throughout this challenging time.
"As always, we prioritize ensuring fair treatment for all parties involved," added Jylhä-Ollila. "We will continue working closely with authorities both in Finland and abroad in order to navigate through this complex situation."
Meanwhile, investors remain cautious about developments surrounding Fortum’s business dealings within Russia. Market analyst Maria Tikhonova shared her thoughts on what might lie ahead:
"The current geopolitical scenario has created much uncertainty around foreign investments within Russia," she stated. "It remains unclear how long these temporary measures will last or how they may evolve over time; therefore, it would be wise for investors to closely monitor the situation and make well-informed decisions."
As Fortum delves into investigating the impact of Russia's temporary takeover on its assets, businesses worldwide watch closely to understand how this unprecedented action might affect foreign investments in an increasingly turbulent geopolitical landscape.