OAO Fortum Traded Its First Energy Futures on Moscow Energy Exchange

Press Release July 12, 2011

OAO Fortum Traded Its First Energy Futures On Moscow Energy Exchange Being an active player in Nord Pool, Fortum contributes its expertise to the further development of financial derivatives in the Russian electricity market.

"In a liberalized wholesale electricity market it is important to any generating company to hedge its electricity price for an extended period by entering into futures contracts. Currently, the share of generating companies on Mosenex continues to remain low amidst the prevailing presence of financial players. The active participation of generators will promote market development and directly affect optimal pricing," says Yuriy Eroshin, Vice President for Portfolio Management and Trading, OAO Fortum.

OAO Fortum began to make preparations for participation in energy futures trading in 2010 in close cooperation with specialists from Fortum Corporation. All internal processes were worked out required for the trading using the corporate IT-platform Providus adopted in Russia Division. It makes the trading process convenient, transparent and reliable.

"Our goal is to participate in creating the full cycle of trading technology as adopted by the European energy exchanges, with the focus on the needs of the real economy," observes Yuriy Eroshin.

* futures contracts are contracts allowing the parties to make a transaction for selling an underlying asset (electricity for the energy market) at a specified price in the future.

* In 1993, the world's first exchange for electricity trading Nord Pool was established based on Norway's energy market It gradually integrated energy systems of Norway, Sweden, Finland, Denmark, and Estonia. Currently, there are about 350 companies from 18 countries operating in Nord Pool. Nord Pool offices are located in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London.

*ОАО Fortum is a territorial generating company. Production assets and activities are focused on the Ural and Western Siberia. Total installed capacity is 3,241 MW of power and 14,191 MW of heat. The ongoing investment program will increase the power capacity to 5,146 MW. The Finnish energy corporation Fortum is the major shareholder in OAO Fortum with 94.5% holding (including the shares owned by 100% subsidiary OAO Fortum) and over 25% stake in OAO TGC-1. * Fortum’s purpose is to create energy that improves life for present and future generations. We provide sustainable solutions that fulfill the needs for low emissions, resource-efficiency and energy security, and deliver excellent value to our shareholders. Our activities cover the generation, distribution and sales of electricity and heat as well as related expert services. Fortum's operations focus on the Nordic countries, Russia and the Baltic Rim area. In the future, the fast-growing, liberalizing Euro-Asian energy markets provide additional growth opportunities In 2010, Fortum’s sales totaled EUR 6.3 billion and comparable operating profit was EUR 1.8 billion. The corporation employs 10,500 people. Fortum’s shares are quoted on NASDAQ OMX Helsinki. For more information, visit the corporate web-site www.fortum.com.

The Finnish Power Exchange (EL-EX) for buying and selling electricity started its operations in August 1996. Since 1998, the Nordic Power Exchange, Nord Pool, has been the marketplace for trading electricity. Established in 1993, Nord Pool is the world’s first multinational commodity exchange for electricity.

For further information, please contact: Denis Litoshik, Elena Berezyuk Public and Media Communications Section Email: [email protected]. Phone: 8 985 383 52 61 / 8 919 928 45 45/ 8 (351) 259-64-76/ 8 (3452) 596-518