Enel wraps up EUR-137m sale of Russian business

Italian electric utility and major renewables player Enel SpA (BIT:ENEL) on Wednesday said it has completed the divestment of its entire shareholding in its Russian subsidiary in a deal worth about EUR 137 million (USD 133m).

The Italian group has offloaded its 56.43% interest in PJSC Enel Russia to local oil giant Lukoil (MCX:LKOH) and private fund Gazprombank-Frezia. The deal was originally agreed in June and cleared by the President of Russia in early August.

By exiting Enel Russia, the Italian company is parting with about 5.6 GW of conventional capacity and some 300 MW of wind projects in different stages of development.

Enel explained that the sale is aligned with its strategic aim “to focus its activities mainly in countries where an integrated position along the value chain can drive growth and enhance value creation from the opportunities offered by the energy transition.” It estimates that the deal will bring a positive effect on its consolidated net debt of around EUR 610 million and have a negative impact on reported group net income of around EUR 1.3 billion.

The divestment completes the initial disposal of Enel’s power generation fleet in Russia, which the Italian group initiated in 2019 with an initial sale of some coal-fired assets.

(EUR 1.0 = USD 0.971)

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