Fortum collects its 800 million euro receivables from the Russian subsidiary through the courts

Fortum has commenced proceedings Forward Energoa (formerly PAO Fortum) against in a Dutch court.

The lawsuit concerns intra-group loans of EUR 600 million granted to PAO Fortum.

PAO Fortum was the Russian subsidiary of Fortum, which operated in the Urals and Siberia.

According to Fortum’s press release, PAO Forward Energo has defaulted on its payment obligations for all loans.

Most of the loans are overdue and no payment has been made. In addition, PAO Forward Energo has neglected to pay the interest on all loans to Fortum, the release states.

The required receivable, including interest and default interest, is approximately EUR 800 million. The final amount depends on the exchange rate between the Russian ruble and the euro and the amount of interest due.

The trial is expected to last for several years. Based on the original loan agreements, disputes between the parties will be resolved in Dutch courts in accordance with Dutch law.

Fortum announced in March 2022 that it will stop all new investment projects in Russia. In May of the same year, the company announced that it had decided to completely withdraw from the Russian market.