Russia has frozen the sale of Finnish energy company Fortum’s operations in Russia, says a report Russian business newspaper Kommersant.
Kommersant’s unnamed sources told the publication that Russian authorities made a decision last month to freeze the sale of Fortum. Fortum’s majority owner is the Finnish state.
A similar decision was also made regarding the Italian energy company Enel’s plans to sell its Russian operations.
Decree issued by the President of Russia Vladimir Putin Earlier this year – which prevents foreign owners of energy companies operating in Russia from selling their holdings without special permission – were the reason for blocking the sale of Fortum and Enel, according to sources.
Fortum’s communications department told Yle in an email that the company is aware of the changes in Russian legislation and is analyzing the possible effects on the company’s planned exit from the country.
"As we already stated in May, the sale of Russian business requires the approval of the authorities in any case. In the energy sector, this has previously meant the approval of the Russian government," the company commented.
In May, Fortum announced its intention to withdraw from Russia a "in a controlled manner".
Kommersant reported in June, when Fortum collected takeover offers, and Russian energy companies such as Gazprom and Inter RAO have been seen as potential buyers.
Source: The Nordic Page