The Ministry of

Finance disclosed the principle of transferring control over Western assets Alexey MoiseevAlexey MoiseevAlexey MoiseevAlexey MoiseevAlexey Moiseev

The Russian assets of foreign companies that were excluded from participation in decision-making under the decree of President Vladimir Putin will be managed by domestic businesses that have suffered from the actions of unfriendly countries. This was announced by Deputy Finance Minister Alexei Moiseev at a conference of RBC and the NKR rating agency “Banks. Transformation. Economy 2.0”.

The President signed a decree "On the temporary management of certain property" on April 25. According to the document, RUSSIA may introduce external management of Russian assets of foreign investors as a response to unfriendly actions by the US and other states. So far, the list of such property includes the assets of the German Uniper and the Finnish Fortum. The Federal Property Management Agency became their interim manager. In "Fortum" the HEAD of the board of directors was replaced.

“Rosimushchestvo, on the whole, fulfilled its tasks, they re-elected the board of directors and appointed new directors. At this stage, the design of the presidential decree is such that in fact the management will be carried out by a company that has suffered from unfriendly countries,” Moiseev said.

That is, in fact, the Federal Property Management Agency will not be engaged in management. “Whoever is hurt is the one to govern,” he said.

Presidential spokesman Dmitry Peskov explained that the assets of Fortum and Uniper were included in the list of such assets due to the actions of the authorities of their countries, which are aimed at "creating a regulatory framework for the actual seizure of assets of Russian companies abroad."

In June last year, the German government , where Uniper is headquartered, decided to take Gazprom Germania GmbH into external control, gaining control of the trading structures and underground storage facilities (UGS) previously owned by Gazprom. Minority shares of Gazprom in three refineries in the north of Germany also came under the control of the state-owned Federal Network Agency.

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Finland, unlike Germany, did not introduce external management of Russian assets. However, last spring, the customer for the construction of the Hanhikivi-1 nuclear power plant, the Finnish Fennovoima (34% owned by Rosatom), unilaterally terminated the contract for the project with the Russian state corporation. The companies began proceedings and filed counterclaims against each other: Fennovoima - for about €2 billion, Rosatom - for €3 billion.

What assets do Fortum and Uniper have in Russia

Uniper and Fortum are among the largest foreign investors in the Russian power industry. Uniper controls 87.73% of Unipro, which owns five thermal power plants in Russia: Surgutskaya GRES-2, Berezovskaya GRES, Shaturskaya GRES, Smolenskaya GRES and Yaivinskaya GRES. The company employs more than 4 thousand people. Unipro's revenue in 2022 according to IFRS increased by 20%, to 105.8 billion rubles, net profit - 2.6 times, to 21.27 billion rubles.

Fortum owns 98.23% of Fortum (formerly TGK-10), which operates seven CHP plants in the Chelyabinsk and Tyumen regions, and about 30% of PJSC TGK-1, which generates electricity and heat in northwestern Russia. Fortum, which employs more than 3,000 people, is also a major investor in renewable energy in Russia: the company's portfolio includes a wind farm in the Ulyanovsk region and three solar power plants located in the Orenburg region and Bashkiria. Fortum's revenue under IFRS in 2022 increased by 6%, to 83.6 billion rubles, net profit decreased by 19.3%, to 12.5 billion rubles.