Starfinancer

MILAN – Enel leaves Russia. The electricity company announced that the agreements relating to the sale of the entire stake held in the share capital of PJSC Enel Russia (Enel Russia) have been signed today.

Enel signed two separate agreements, respectively, with PJSC Lukoil and the Closed Combined Mutual Investment Fund “Gazprombank-Frezia” for the sale of the entire investment held in Enel Russia, equal to 56.43% of the share capital of the latter, for a total consideration of approximately 137 million euros which will be paid at the closing.

With the completion of the transaction, Enel will divest all of its power generation assets in Russia, which include approximately 5.6 GW of conventional capacity and approximately 300 MW of wind capacity in various stages of development, ensuring continuity for its employees and customers.

The transaction, explains Enel, is in line with the Group’s strategic objective of concentrating its activities mainly in countries where an integrated position along the value chain can drive growth and improve value creation by leveraging the opportunities offered. from the energy transition.

In any case, Enel reports that it has already adopted or promoted some measures that have led to the termination of management and coordination with regard to Enel Russia. These measures include: the appointment of only independent directors, of Russian nationality, on the occasion of the recent renewal of the company’s board of directors; the appointment of a new general manager, also of Russian nationality, who reports exclusively to the board of directors; the termination, where possible, of intra-group contracts; the modification of the organizational structure of the Enel Group in order to interrupt the hierarchical reporting of the staff or business functions of Enel Russia with respect to those of Enel.

The overall transaction, including the effect of the loss of control over Enel Russia, is expected to generate a positive effect on the Enel Group’s consolidated net financial debt of approximately € 550 million and a negative impact on the Group’s reported net profit. of approximately € 1.3 billion, mainly due to the release of the foreign exchange translation reserve, for approximately € 1.1 billion as of May 31, 2022. This accounting effect, the company specifies, will have no impact on ordinary economic results.