Fortum Will Write Off Russian Assets Over $1.8Bln

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/ Go to the mediabankElectrical grid, Russia / Go to the mediabankInternationalIndiaAfricaMOSCOW (Sputnik) – Finnish energy company Fortum said on Thursday that it will write off its Russian assets worth 1.7 billion euros ($1.86 billion) that came under the control of Russia’s Federal Agency for State Property Management (Rosimushchestvo) following the decree on the external management of foreign assets. In late April, Russian President Vladimir Putin signed a decree on the transfer of foreign assets to temporary management of Rosimushchestvo if Russian assets abroad are seized. Shares in Russian subsidiaries of Fortum are among foreign assets targeted by the decree. Last week, Fortum notified Russia of its objection to the decree, saying it will take measures to protect its rights. EconomyRussia Returns to Top-10 World’s Largest Economies First Since 20147 May, 05:51 GMT”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 EUR 1.7 billion equaling the remaining book value, which will negatively impact the Group’s equity. The impairment loss will be partially tax deductible,” the company said in a statement.