Fortum Launches €800 Million Lawsuit Against Russia's Forward Energo Over Loan Defaults.
Finnish energy company, Fortum has filed an €800 million lawsuit in a Dutch court against Russia's Forward Energo, over unpaid loans totaling €600 million. Most of these loans are overdue and have not been repaid, and the company has also failed to make interest payments.
Fortum, the Finnish energy company, has initiated legal proceedings in a Dutch civil court against Russia's Forward Energo, focusing on intercompany loans totaling approximately €600 million that PAO Forward Energo has failed to repay. Most of these loans are overdue, and no payments have been made. Additionally, PAO Forward Energo has defaulted on interest payments for all outstanding loans.
The legal proceedings could take several years, as the original loan agreements mandate disputes be resolved under Dutch law. PAO Forward Energo was once owned by Fortum but was placed under temporary management by a decree from Russian President Vladimir Putin in 2023. This transfer put the company under the Federal Agency for State Property Management, leading to its rebranding as PAO Forward Energo.
PAO Forward Energo is a significant producer and supplier of thermal and electric energy in the Ural and Western Siberia regions, operating seven thermal power plants in Chelyabinsk and Tyumen oblasts, along with several renewable energy facilities across Russia.
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