The spin off is a result of the Russian power sector reform, which requires unbundling of different businesses, enabling the partial privatization of the Russian power sector.

The Espoo-headquartered Finnish power provider will now have a presence on the boards of St. Petersburg Generating Company, Northwest Energy Management Company, St. Petersburg Sales Company and St. Petersburg Grid Company. Each one of the new boards has 11 seats.

Fortum owns 32.8% of voting shares in Lenenergo having increased its portion in July from 29.6% following a shareholders resolution on reorganization of the Leningrad area power provider and a related redemption of its shares.