Fortum says to write off 1.7 bln euros of Russian assets

HELSINKI, May 11 (PRIME) -- Finland's energy company Fortum will write off for 1.7 billion euros of Russian assets now under control of the Federal State Property Management Agency and will deconsolidate the country's segment of the business, the company said in a statement on Thursday.

"Following the loss of control, the Russia segment will be deconsolidated and the Russian assets will be fully written down in Fortum’s second quarter 2023 financials. Fortum will record an estimated impairment of approximately 1.7 billion euros equaling the remaining book value, which will negatively impact the group’s equity. The impairment loss will be partially tax deductible," the company said.

Fortum, that invested about 6 billion euros in Russia, will stop reporting on the Russian business from April–June, CEO Markus Rauramo said as cited in the statement.

In April, Russian President Vladimir Putin approved temporary nationalization of stakes in power companies Fortum and Unipro and their management by the Federal State Property Management Agency.

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