Italian utility Enel sells stake in Russian unit to local investors

A logo of Italian energy multinational Enel is seen at the headquarters in Milan, Italy, February 5, 2020. REUTERS/Flavio Lo Scalzo

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MILAN, June 16 (Reuters) – Italian utility Enel (ENEI.MI) said on Thursday it had agreed to sell its 56.43% stake in Enel Russia for around 137 million euros ($144.15 million) to local investors.

The transaction, which is expected to be completed in the third quarter of this year, will mark the Italian group’s complete exit from Russia and follows similar moves by the world’s largest energy companies, including BP Plc and Shell Plc after the invasion of Ukraine via Moscow. Read more

On Wednesday, Enel chief executive Francesco Starace told Reuters the deal to sell the stake in the Russian subsidiary was complete. Read more

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The sale will have a negative impact on the group’s net profit of around 1.3 billion euros, Enel, Italy’s leading utility, said in a statement, mainly due to the release of foreign exchange reserves. He added that the company’s ordinary financial results would not be affected.

The transaction should have a positive effect on the group’s consolidated net debt of around 550 million euros.

Enel said Lukoil (LKOH.MM), Russia’s second-largest oil producer, and private fund Gazprombank-Frezia will buy its stake in the unit.

Founded in 2004, Enel Russia has about 5.6 GW of conventional capacity and about 300 MW of wind capacity in various stages of development.

($1 = 0.9504 euros)

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Reporting by Claudia Cristoferi and Francesca Landini; edited by Federico Maccioni and Paul Simao

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