Finland power firm takes 2.1-bn-euro Russia hit

Due to “geopolitical tensions and uncertainties” tied to its Russian activities, Finnish state-owned utility Fortum said Tuesday it will take a 2.1 billion euro ($2.2 billion) blow.

While the energy producer announced in March it would stop all new investments in Russia following Moscow’s invasion of Ukraine, it said current operations would continue there “as normal”.

Fortum said Tuesday it would record pre-tax impairments of around 2.1 billion euros related to its operations in Russia in the first quarter.

With 12 power plants and 7,000 employees in Russia, the value of Fortum’s assets in Russia after the write-down amounted to 3.3 billion euros, the company said.

Hundreds of Western firms have suspended operations in Russia in the wake of the February 24 invasion.

Finland’s Prime Minister Sanna Marin said April 9 that all Finnish companies “should leave Russia very soon”, but she noted that Russian legislation and attempts at nationalization could make exits challenging.

On March 7, Fortum’s subsidiary Uniper announced a write-down related to the Nord Stream 2 project — a natural gas pipeline from Russia to Germany — of 987 million euros.

Fortum’s Russian businesses generated an operating profit of 500 million euros in 2021, accounting for almost 20% of the company’s overall comparable operating profit.