Finnish Energy Group Halts Investments in Russia

  • Fortum halts investments in Russia.
  • Fortum’s Russian operations accounted for roughly 20% of the group’s comparable operating profit.

Following Russia’s invasion of Ukraine, Finnish energy company Fortum (FORTUM.HE) announced on Thursday that it would stop making new investments in Russia and reduce its thermal exposure there.

Fortum’s Russia division operates seven thermal power plants for district heating in Russia. In contrast, German utility Uniper, which is majority-owned by Fortum, operates five power plants through its Unipro subsidiary across the country.

“The status quo cannot be maintained. Therefore, for the time being, we have halted all new investment projects in Russia and will continue to reduce our thermal exposure in the country,” Markus Rauramo, the CEO of Fortum, said in a statement. Last year, Fortum’s Russian operations accounted for roughly 20% of the group’s comparable operating profit. At the same time, Uniper’s long-term gas contracts totalling 370 annual terawatt-hours are sourced from Russia, according to the company.

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