Fortum, the Finnish renewable energy giant, has decided to permanently close its operations in Russia after local authorities, led by Vladimir Putin's government, seized its assets. The company has estimated that the total cost of this cold shower, a real "energy counteroffensive", amounts to around 2 billion euros.
Hunchback shot
The decision came following the actions of the Russian government. In April, in a large-scale operation, the Duma ordered the confiscation of material and financial assets of the Fortum branch in the country. The Finnish company defined these actions as a "point of no return" and a "cruel violation of international law". According to Fortum, taking control of its operations in Russia would be just a pretext to ensure the country's energy security.
Since the beginning of conflict in Ukraine, Fortum says it has repeatedly tried to exit the Russian market. It also sought permission to sell its operations to Russian and international buyers, but to no avail. Before the hostilities, Fortum was the largest player in the renewable energy market in Russia, with a portfolio of approximately 3,4 GW of wind and solar plants, both solo and through joint ventures.
The counter-offensive (for now) is Russian, and once again energetic
At present, Fortum has filed a formal complaint with the Russian government. Given the remote hope that he will be accepted, between now and June the Finns have only one option: to close the books in Russia. As mentioned, the CEO Markus Rauramo estimates the damage at around 2 billion euros: and it's not just Russia. The energy giant will have to deal with it even with commercial partners such as Vestas, the wind turbine giant, which is also in trouble for lack of orders from the Russian market.
In short, a somewhat predictable counteroffensive (political and economic tensions between Russia and Finland are skyrocketing after the latter's entry into NATO), but no less heavy for this. Fortum's misadventure in Russia represents a serious blow for the Finnish company and for the renewable energy sector in the country.
In a war that is fought blow by blow also on the energy level (the "mysterious" explosion of the Nord Stream 2 gas pipeline is the other crucial stage of this journey) the situation of Fortum in Russia is an example of how war and economic interests they may also slow down this sector enormously.
