Finnish energy company Fortum files lawsuit in a Dutch civil court against Russia’s Forward Energo over failed loan repayment
Finnish energy company Fortum files lawsuit in a Dutch civil court against Russia’s Forward Energo over failed loan repayment
FORTUM CORPORATION PRESS RELEASE 22 OCTOBER 2024 Fortum has initiated legal proceedings before a Dutch civil court against Forward Energo (formerly known as PAO Fortum). The proceedings concern
The lawsuit concerns intercompany loans amounting to some €600 million, which Forward Energo has failed to repay. Most of these loans have reached their maturity date, and no payments have been made. In addition, Forward Energo has defaulted on the interest payments for all the loans, Fortum says in a statement.
The company involved in the lawsuit was formerly owned by Fortum but was placed under temporary management by decree of Russian Leader Vladimir Putin in 2023, transferring it to the Federal Agency for State Property Management. Afterward, the company changed its name to Forward Energo.
Fortum expects the legal proceedings to last several years.
According to the initial loan agreements, disputes between the parties are to be settled in Dutch courts and according to Dutch law.
Why bother suing a company owned by the Russian state in EU courts? Is there any chance of recouping the loan right now?
There are tons of frozen Russian assets in the EU, which they can recoup their losses from legally.
Ah, didn't consider that!