Teller Report

Finnish Fortum initiated arbitration proceedings against Russia

2/27/2024, 2:52:50 PM

Highlights: Finnish state energy company Fortum has begun arbitration proceedings against Russia. The energy concern intends to demand compensation for its assets. At the end of April 2023, Russian President Vladimir Putin introduced temporary management of foreign securities in Unipro and Fortum. The Finnish energy concern estimated losses from Russian projects at €2 billion. The start of arbitration proceedings is related to the violation by the Russian Federation of its obligations under bilateral investment treaties concluded by Russia with the Netherlands and Sweden, the publication says.

The Finnish state energy company Fortum has begun arbitration proceedings against Russia. The energy concern intends to demand compensation for its assets.

As indicated in the statement issued by the company, we are talking about assets that were transferred to temporary management in Russia.

Fortum intends to “protect its legal position and the interests of shareholders.”

“The start of arbitration proceedings is related to the violation by the Russian Federation of its obligations under bilateral investment treaties concluded by Russia with the Netherlands and Sweden,” the publication says.

At the end of April 2023, Russian President Vladimir Putin introduced temporary management of foreign securities in Unipro and Fortum.

The Finnish energy concern estimated losses from Russian projects at €2 billion.