Fortum Watches Development of Russian Energy Sector with Great Interest

'Fortum is watching the development of the Russian energy sector with great interest,' announced Fortum Head of Portfolio Management and Trading Timo Karttinen. However, he said that it was too early to say whether Fortum would increase its shareholding in Lenenergo or buy stakes in other Russian energy companies. He added that the deal with German energy company E.ON to buy their 9.3% stake in Lenenergo was 'a result of Fortum's interest in Baltic countries.' Mr Karttinen also mentioned that Fortum is in favour of Lenenergo's plans for restructuring.

Fortum and E.ON have made several deals in the energy sector of Northern Europe, including Norway and Russia. The total sum of their deals is about EUR 800 million. Fortum is also planning to buy E.ON's 21.4% of shares in Hafslund, the second largest electricity company in Norway.

Fortum was set up in 1998 by the merger of two Finnish companies - Imatran Voima Oy and Neste. The company's operations encompass all stages of energy production from the extraction of natural resources to refining, including oil refining, distribution and marketing, energy engineering and maintenance and repair. Fortum's clients include international oil companies, various branches of industry, municipalities, energy companies and private consumers. Annual company turnover is about EUR 11 billion.

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