Fortum takes Russian company to court to recover loans

Finnish energy company Fortum has initiated legal proceedings before a Dutch civil court against Russian company Forward Energo (formerly known as PAO Fortum), said Fortum in a press release on Tuesday.

The proceedings concern intercompany loans of approximately EUR 600 million granted to PAO Fortum.

PAO Forward Energo is in payment default of all intercompany loans. The majority of these loans have reached their maturity date and have not been repaid.

In addition, PAO Forward Energo has failed to pay the interest due on all loans.

The claim, including interest and default interest, amounts to about EUR 800 million.

The final amount will depend on the foreign exchange rate of Euro and Russian Ruble and amount of due interest.

The process is estimated to take some years. Under the initial loan agreements, disputes between the parties, are to be settled in Dutch Courts and according to Dutch law.