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Picture: ANGELIKA WARMUTH/REUTERS
Picture: ANGELIKA WARMUTH/REUTERS

Helsinki — Finnish energy utility Fortum is seeking billions of euros in compensation from Russia for Moscow’s seizure last year of its subsidiary in the country.

Russia in 2023 took over seven thermal power units and a joint-venture portfolio of wind and solar plants under a decree by President Vladimir Putin after the utility had tried to sell the assets since the invasion of Ukraine in 2022.

“Fortum will seek compensation for the value of its shares in PAO Fortum and its investments in Russia, amounting to several billions of euros,” the company said in a statement on Tuesday.

“The commencement of arbitration proceedings follows the Russian Federation’s violations of its investment treaty obligations under the bilateral investment treaties that Russia has with the Netherlands and Sweden,” the utility added.

The group in May last year announced losses of €1.7bn following its exit from Russia.

President Vladimir Putin has signed a presidential decree approving the takeover of the Russian operations of Fortum and its former German subsidiary, Uniper.

Reuters 

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