Moscow is preying on foreign companies by confiscating their assets in Russia.
Russian President Vladimir Putin I signed a decree Late Tuesday (April 24) allows the Kremlin to impose “temporary” state control over the assets of companies or individuals from “unfriendly” countries, including the United States and its allies, that take or threaten to take similar steps.
3 considerations before your company takes a stand
decree is a warning signal to the West, particularly the European Union, who is debating whether Frozen Russian assets should be used to rebuild Ukraine.
For the first time during the ongoing Ukraine warRussia The facilities are owned by two companies – Finnish Fortum Oyj and its former German subsidiary Uniper (which It was rescued by the German state last year to prevent its collapse) under state control.
The Kremlin has long threatened to nationalize the assets of companies leaving Russia — especially after Germany took over and nationalized the domestic arm of Russia. Oil giant Rosneft And Natural gas producer Gazprom.
both of them oneps And Fortum they tried to dump Their bets are on Russia since the start of the war. but Russia has not Permissible He. She, Because of a decree prohibiting Western investors are prohibited from selling their stakes in Russian companies involved in the production and supply of heating and electricity without special permission from the boss. now their shares in these facilities untouched, But Fortum and Uniper can’t exercise great control over them.
Cited by: In The Russian state will make management decisions
“External management is temporary, which means that the original owner no longer has the right to make management decisions. The external manager receives powers that allow him to ensure the efficiency of the business based on its importance to the Russian economy.
– Federal State Property Management Agency Today (April 26)
In numbers: Uniper and Fortum in Russia
83.73%: Uniper’s stake is in Unipro PJSC, which operates five power plants in Russia and employs about 4,300 people
98.2%: Fortum’s share Fortum PJSC, which has Seven Thermal power plants in the Urals and Western Siberia. She also takes pride in 3.4 gigawatts Wind and solar energy portfolio. “Fortum’s current understanding is that the new decree does not affect ownership (registered ownership) of assets and companies in Russia,” he said in a statement. “However, it remains unclear how this affects, for example, the Russian operations of Fortum or the ongoing divestment process.”
1.7 billion euros ($1.87 billion): Fortum’s total impairment charges related to its operations in Russia
4.4 billion euros ($4.8 billion): the lose it uniper It seized its Russian unit earlier this year, saying it no longer controls its operations Company
Company of interest: Wintershall Dea
Mario Mehren, CEO of Wintershall Dea, a mid-European oil and gas company Exit from RussiaAnd to reporters during the first-Earnings for the quarter 2023 indicate that Wintershall is still standing He was unimpressed for now but also warned that Russia’s policies are “unpredictable” and “unreliable”.
“I can’t tell you if that will happen. Everything can happen in Russia these days in terms of direct interference with our rights to our property,” Mehren added.
Person of interest: Andrey Kostin
Andrey Kostin CEO state-owned bank VTB PAO, suggested on monday (April 24), that Moscow will take over the assets of foreign companies in Russia, and return them only after the lifting of sanctions over the war in Ukraine. In the interview, which was broadcast on the Rossiya-24 TV channel, he specifically cited Fortum as an example.
Why is Russia retaliating now?
Recently, news came out which the G7 countries are likely to weigh Almost complete ban On exports to Russia, the extension of existing sanctions as punishment for Moscow refused cancel its Ukrainian invasion. Already, products used for military purposes and luxury goods were banned. nEconomic forces can include used cars, tires, cosmetics, and clothing in trade bans, anonymous source he told the Japan Times.
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