Italian oil and gas company Enel has signed two agreements to sell its 56.43% stake in PJSC Enel Russia to local investors for a €137m consideration. 

The stake is being sold to PJSC Lukoil and private fund Gazprombank-Frezia.

Following the deal’s completion, Enel will also sell all its Russian power generation assets, whose total conventional capacity amounts to around 5.6GW.

The company also intends to sell 300MW of wind capacity, which is currently at different stages of development in the country.

With this divestiture, Enel will complete the sale of its power generation assets in Russia, which began in 2019 with the sale of its coal-fired assets.

In a statement, Enel said: “It should be noted that Enel has in any case already adopted or promoted some measures that have resulted in the termination of management and coordination with regards to Enel Russia.

“The overall transaction, including the effect of the loss of control of Enel Russia, is expected to generate a positive effect on the group’s consolidated net debt of about €550m and will generate a negative impact on reported group net income for approximately €1.3bn, mainly driven by the release of a currency translation reserve worth around €1.1bn as of 31 May.”

Subject to the clearance from the Russian Government Commission on Monitoring Foreign Investment and the Russian Federal Antimonopoly Service, the deal is expected to close in the third quarter of this year.

Based in Rome, Enel currently has more than 90GW of total capacity across 30 countries.

Earlier this year, the company signed an agreement with engineering firm Comal to build a solar tracker factory at the Montalto di Castro power plant in Italy.

Comal’s Tracker Sun Hunter factory will have the capacity to manufacture enough trackers to support the generation of almost 1GW of solar energy a year.