Finland’s biggest energy firm, Fortum, has launched arbitration proceedings against Russia, seeking compensation for what it calls "the unlawful seizure of its assets".
The company accused Moscow of violating its investment treaty obligations.
Fortum said that it sent notices of dispute to Russian officials last summer, but that they have "failed to engage in any settlement discussions". The Finnish utility said it would seek "several billions of euros" in compensation for the value of its shares in PAO Fortum (the former name of its Russian assets) and its investments in the country.
"Hostile actions"
"The dispute stems from the hostile actions taken by the Russian Federation which culminated with the Presidential Decree No. 302 issued on 25 April 2023, whereby the Russian authorities seized control of Fortum’s assets in Russia and deprived Fortum of its shareholder rights," it said in a statement on Tuesday.
Following that expropriation, the Russian assets were fully detached from Fortum. The Kremlin installed new management and renamed PAO Fortum as Forward Energo.
Fortum vowed to "take all necessary steps to protect its investments and rights," although it remained unclear how it could enforce this.
Last May, Fortum said it would write off the remainder of the value of its Russian division, which was seized by Moscow in retaliation for asset freezes by European countries in response to Russia’s invasion of Ukraine. Fortum booked an impairment of 1.7 billion euros for the second quarter of last year.
The Finnish state owns just over 51 percent of Fortum’s shares.
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