The chief executive of E.ON, Johannes Teyssen has told the company’s Annual General Meeting that he remains positive about the company’s investments in Russia, despite recent diplomatic activity surrounding the Russian invasion of Crimea.

“In the long-term, we view the Russian power market as stable and expect a significant need to renew capacity as well as further investment opportunities,” Mr Teyssen said, by way of reassuring company investors. “I can tell you that our working relationship with our Russian partners continues to be good.”
Vladimir Putin said that Moscow saw no need for counter sanctions against the West, but could reconsider the participation of Western companies in its economy, including energy projects.

E.ON (FWB: EOAN), Germany’s biggest utility, has spent $8.3bn (EU6bn) in Russia since 2007 and is the biggest foreign investor in that electricity market.

At the AGM Teyssen said his company was committed to its Russian interests even despite the ongoing sanctions being implemented by the west. The European Union on Tuesday announced asset freezes and travel bans on 15 Russians and Ukrainians, a day after US sanctions on seven Russians and 17 firms linked to Russia’s President Vladimir Putin.

The company retained its 2014 profit outlook including earnings before interest, taxes, depreciation and amortisation (EBITDA) of 8-8.6 billion euros ($11.1bn-$11.9bn) and underlying net income of 1.5bn-1.9bn.

E.ON supplies power in Russia through local plants operated by E.ON Rossiya OAO, in which it holds more than 80 per cent.

Apart from the company’s Russian business, Teyssen said E.ON in Turkey, where it has 9 million customers via joint venture Enerjisa, came under pressure from a weak lira, but said this was not “dramatic for a long-time investor like us”.

He also said that he expected E.ON to be refunded close to $2.77bn in nuclear fuel tax payments soon, following a preliminary decision by a Hamburg court earlier this month that said utilities should be reimbursed.

“The Federal Government is obligated to transfer these amounts in the next few days,” Teyssen said.

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