The Kremlin has issued a warning that it may seize additional Western assets in response to foreign actions against Russian companies. This follows the temporary control established over the assets of Finland's Fortum and Germany's Uniper by Russia.
Late on Tuesday, President Vladimir Putin signed a decree to temporarily control the Russian assets of the two state-owned European energy firms. Fortum is currently "investigating" the situation, while Uniper, Fortum's former subsidiary, is "reviewing" the move. The German finance ministry has not yet commented.
The decree reveals that Moscow has already taken action against Uniper's Russian division, Unipro, and Fortum's assets. Russia has indicated that this move could be reversed.
The Kremlin's response comes amid reports that G7 nations are considering a near-total ban on exports to Russia and growing calls for stronger sanctions to limit Russia's ability to engage in conflict in Ukraine. The European Union is also exploring the possibility of using frozen Russian assets to rebuild Ukraine.
Kremlin spokesperson Dmitry Peskov stated, "The decree adopted is a response to the aggressive actions of unfriendly countries." He continued, "This initiative mirrors the attitude of Western governments towards foreign assets of Russian companies."
Peskov clarified that Putin's decree "does not deal with property issues and does not deprive the owners of their assets. Because external management is temporary and only means that the original owner no longer has the right to make management decisions." He added that the primary goal of the decree is to establish a compensation fund for potential reciprocal measures in response to the "illegal expropriation of Russian assets abroad."
Uniper owns 83.73% of Unipro, which operates five power plants with a combined capacity of over 11 gigawatts in Russia and employs approximately 4,300 individuals. Fortum, majority-owned by Finland, is affected by the temporary control as well. The Finnish foreign ministry has not yet commented on the potential impact of Russia's decision on the relationship between the two countries.
Fortum's Russia division operates seven thermal power plants in the Ural region and Western Siberia and manages a portfolio of wind and solar plants in Russia with local venture partners. The book value of these assets amounted to €1.7 billion ($1.87 billion) at the end of 2022.
Both Fortum and Uniper have been attempting to exit Russia. In February, Uniper valued its Unipro stake at a symbolic €1 due to the improbability of a deal occurring.
The decree highlights Russia's need for urgent action in response to "unfriendly and contrary to international law" actions by the United States and others. Moscow's move complicates the situation for companies trying to withdraw from Russia, with businesses holding stakes in key energy projects and banks facing increasingly stringent exit pathways.
