Fortum to Stop All New Investments in Russia
03 März 2022 - 10:17AM
Dow Jones News
By Dominic Chopping
Finnish energy group Fortum Oyj said it will stop all new
investment projects in Russia and reduce its thermal exposure in
the country.
Fortum has seven thermal heat and power plants in Russia while
its Uniper SE subsidiary has five power stations there.
"Business as usual cannot continue," Chief Executive Markus
Rauramo said.
"For now, we have stopped all new investment projects in Russia
until further notice and we will continue to reduce our thermal
exposure in Russia."
Fortum's Russian operations represented around 20% of the
group's 2021 comparable operating profit, while around half of
Uniper's long-term gas contracts are sourced from Russia. The
group's Russian generating assets and its exposure in the Nord
Stream 2 pipeline project carry a book value of roughly 5.5 billion
euros ($6.12 billion), it added.
All of the company's operations in the country are currently
running as normal, but Fortum cautioned that the situation is very
dynamic, making it difficult to predict the extent of any effect on
operations in the future.
In a separate announcement Thursday, Fortum said it has decided
against selling its electricity retail business and Polish district
heating business, instead deciding to develop the businesses as
part of the group.
In addition, it said it has decided to apply for a new operating
license for both units at its Loviisa nuclear power plant in
Finland until the end of 2050. Investments related to continuing of
operations and the lifetime extension will amount to an estimated
EUR1 billion, it said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
March 03, 2022 04:02 ET (09:02 GMT)
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