Green light from Putin to sale of Enel Russia a Lukoil and the investment fund Gazprombank-Frezia. The special commission, set up by Moscow after the presidential decree which froze all sales of Russian assets by foreign companies without Putin's direct approval, has come out in favor of the operation. In particular, Enel has signed two separate agreements respectively with PJSC Lukoil and with the Closed Mutual Investment Fund "Gazprombank-Frezia” for the sale of the entire stake held in Enel Russia, equal to 56,43% of the share capital of the latter, for a total consideration of approximately 137 million euro which will be paid at the closing of the transaction.
Putin and the crackdown on foreign companies
On August 5, the Russian president had issued a decree which had the effect of blocking the sale agreement signed by Enel on June 16 and which envisaged a sale price of approximately 137 million euros. Now, with Putin's approval, all the electricity generation assets held by Enel in Russia (which began in 2019 with the first sale of coal-fired assets) will pass through the hands of the two state buyers. 5,6 GW of conventional capacity it's about 300 MW of wind capacity at different stages of development.
The closing of the transaction: when it is foreseen
Il closing of the operation, expected within the third quarter of this year, is subject to a series of conditions precedent, including the authorization by the Russian government Commission for monitoring foreign investment and the Russian Federal Antimonopoly Service.
The effects on Enel's accounts: what are the forecasts?
The overall transaction, including the effect of the loss of control of Enel Russia, is expected to generate a positive effect on the Group's consolidated net debt of approximately 550 million euros and will generate a negative impact on the reported Group net profit of approximately €1,3 billion, mainly determined by the release of a translation reserve of approximately €1,1 billion as at 31 May 2022. This accounting effect, explains a note, will have no impact on ordinary economic results.
