(Reuters) - The nationalized energy group Uniper is being targeted by the government in Moscow with its Russian business.

The Düsseldorf-based utility confirmed on Wednesday that its subsidiary Unipro had been placed under state administration. Uniper has taken note of the decree and is examining this, the company explained. Uniper has effectively no longer been able to exercise operational control over Unipro since the end of 2022. Unipro has been deconsolidated and practically written off since the end of 2022. Following a decree signed by President Vladimir Putin, Unipro and the Russian assets of the former Uniper parent company Fortum Oyj were placed under state management. Unipro operates five power plants in Russia with a capacity of more than eleven gigawatts and employs around 4300 people.

According to the decree, Russia must take urgent measures to respond to steps taken by the USA and other countries that are "unfriendly and contrary to international law". The shares in the two companies were initially placed under the control of the Rosimushchestvo state property authority.

According to Uniper, it had already decided to sell the stake in summer 2021 and informed the Russian government of this in fall 2021. A contract was signed with a Russian buyer in September 2022, but the Russian authorities have not yet given their approval. Uniper got into difficulties due to Russia's gas supply freeze in the wake of the war in Ukraine. The company had to be saved from bankruptcy by the German state with billions in aid. The federal government eventually took over Uniper.

The former Uniper parent company Fortum announced that it had not yet received official confirmation from the Russian authorities. Fortum is examining the situation. The decree apparently does not provide for expropriation, but the exact effects are unclear. The Finnish energy company had 1.7 billion euros worth of Russian business on its books at the end of 2022.

According to a report by the Russian news agency Tass, the decree is a reaction to the seizure of Russian assets abroad. Last year, the German government nationalized the current energy company Sefe, formerly Gazprom Germania. Russia had also reacted angrily to possible further sanctions by the West due to the Russian war in Ukraine. This week, the state-owned VTB Bank recommended that Moscow consider taking over and controlling foreign companies such as Fortum and only returning the assets if the sanctions are lifted.

Tass quoted Rosimushchestvo as saying that further deals by foreign companies could come under temporary control. The authority will ensure that the companies are managed in accordance with their importance for the Russian economy. The decree does not provide for expropriation. However, interim management has been appointed. The previous owner can no longer make management decisions.

The oil and gas company Wintershall Dea, which is also withdrawing from Russia, stated that it was not surprised by the decree. It is another decree that "directly interferes with the rights of foreign companies in Russia", said CEO Mario Mehren at a press conference. However, his company is not currently affected by the decree. However: "Nowadays, anything can happen in Russia that directly interferes with our rights and our assets."

(Report by David Ljunggren, written by Hans Busemann, Scot W. Stevenson, Tom Käckenhoff, Patricia Weiß, edited by Ralf Banser; if you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets)).