Russian Agency Takes Management of Fortum Holdings Under Decree
What happened
The Federal Agency for State Property Management is managing Fortum's holdings under a formal decree. The agency is part of a legal instrument that allows Moscow to place foreign-owned companies under temporary management, such as Tarkett and Ontex, without formally taking legal title. This mechanism is justified by Russia as a response to actions by foreign states that impact national, economic, and energy security interests.
From riotimesonline.com
Why it matters
The use of Presidential Decree No. 302 allows the Federal Agency for State Property Management to exercise the owner’s powers over foreign assets. This process creates uncertainty for foreign investors and executives, as it enables Moscow to take operational control while leaving the recovery of assets uncertain.
From riotimesonline.com
Who's involved
- Federal Agency for State Property ManagementManages Fortum's holdings under a formal decree.
- FortumHas its holdings managed by the Federal Agency for State Property Management.
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The entities involved
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Federal Agency for State Property Management
Subdivision of the Russian Ministry of Economic Development that manages Russia's federal state property
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Fortum
Finnish energy company
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