(Bloomberg) -- Enel SpA sold its entire stake in its Russian unit, marking a dramatic reversal for the Italian utility which had been betting heavily on Russia before the invasion of Ukraine.
Enel announced on Thursday it had sold its entire 56.43% stake in Enel Russia with two separate agreements with PJSC Lukoil and Closed Combined Mutual Investment Fund “Gazprombank-Frezia.” The value of the sale is about 137 million euros ($114 million), with closing expected by the third quarter of this year.
With the sale, Enel will dispose of all its Russian power generation assets, which include approximately 5.6 GW of conventional capacity and around 300 MW of wind capacity at different stages of development.
The operation is expected to have a positive effect of 550 million euros on Enel’s net debt and a negative impact on the group’s net income of approximately 1.3 billion euros, the company said.
The sale comes as the energy standoff between Europe and Russia is intensifying, with prices surging and Moscow tightening its squeeze on crucial gas flows to the continent.
©2022 Bloomberg L.P.
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