Fortum sues former Russian business over unpaid loans
Adds Forward Energo declining to comment in paragraph 5
COPENHAGEN, Oct 22 (Reuters) -Finnish utility Fortum FORTUM.HE said on Tuesday it had filed legal proceedings in a Dutch civil court against Forward Energo, its former Russian business, over unpaid intercompany loans totalling around 600 million euros ($649 million).
Earlier this year, Fortum said it would seek billions of euros in compensation from Russia for Moscow's seizure last year of the group's assets in the country.
The claim, including interest and default interest, would amount to around 800 million euros, the company said in a statement, adding it expected the process to take years.
"PAO Forward Energo (formerly known as PAO Fortum) is in payment default of all intercompany loans. The majority of these loans have reached their maturity date and have not been repaid," it said.
Forward Energo declined to comment.
Russia in 2023 took over seven thermal power units and a joint-venture portfolio of wind and solar plants from Fortum under a decree by President Vladimir Putin after the utility had tried to sell the assets following Russia's full-scale invasion of Ukraine in 2022.
($1 = 0.9251 euros)
Reporting by Stine Jacobsen in Copenhagen and Reuters in Moscow; Editing by Anna Ringstrom and Mark Potter
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