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Fortum wants to sell its Russian operations

Fortum and Uniper have a total of twelve power plants in Russia, and Fortum is now striving to sell both its own operations and the Russian company Unipro, Unipro.

“We are preparing to withdraw from Russia in a controlled manner. First, we are trying to find a potential buyer for Russian operations. We also hope that the sale of Unipro’s Russian subsidiary, Unipro, will proceed as soon as possible,” says Fortum CEO Marcos Rauramo In the interim Fortum report.

According to Rauramo, it is a process that can take some time and also requires approval from the authorities. Fortum has already decided to stop using its company name in Russia.

In recent months, Fortum has worked hard to reduce risks in Russia, Rauramo said in the interim report. The company previously announced that there are no new investments in Russia. Fortum also no longer funds a subsidiary in Russia.

alternative gas methods

Fortum’s German subsidiary Uniper is one of the largest importers of Russian gas in Europe, and Fortum states in its interim report that Uniper is now working intensively in cooperation with the German government to find alternative delivery channels for natural gas. Among the planned actions is the construction of a liquefied natural gas terminal in Wilhelmshaven, northern Germany.

Fennovoima’s decision to terminate the agreement with Russia’s Raos project to build a nuclear power plant in Pyhäjoki is another factor that will affect Fortum’s results. Fortum’s stake in the project is 6.6%.

“Energy companies cannot solve the European energy crisis alone, it requires cooperation between energy companies and cooperation between companies and governments. It is important to get clear guidance from the political institutions,” Raramo says.

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Fortum reported similar operating results for the first three months of the year, which amounted to €438 million on the downside. That can be compared to an operating profit of just under 1.2 billion during the same period last year. This year’s result is primarily saddled with Uniper deferring a portion of its gas sales and by improving the company’s gas reserves in the coming quarters.

Rauramo is pleased that power production during the first quarter delivered a good result.