- The entire 56.43% stake in Enel Russia was sold to locals.
Enel SpA, an Italian electric utility company, has signed some agreements to fully exit its subsidiary in Russia for an overall consideration of about EUR 137 million.
Enel has made agreements to see the company dispose of its 56.43% stake in Enel Russia. The stake will be sold to local oil giant Lukoil and private fund Gazprombank-Frezia. The transaction is still awaiting clearance and is expected to be completely done by the third quarter of 2022.
In March, Francesco Starace, Enel’s chief executive, revealed that even though Enel understands the growth in renewables for Russia, the country’s invasion of Ukraine has left Enel no other option than to leave Russia.
In the official statement announcing the sale, the Italian company says that the move aligns with its strategic aim “to focus its activities mainly in countries where an integrated position along the value chain can drive growth and enhance value creation from the opportunities offered by the energy transition.”
Leaving the Russian market means Enel will part away with its 5.6 GW of conventional capacity and about 300 MW of wind projects at different developmental stages. The move will bring a positive effect on its consolidated net debt of about EUR 550 million and have a negative impact on the reported group net income of around EUR 1.3 billion.