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Danish government involved in Vestas dispute over Russian windmills

The Danish foreign ministry has involved itself in a dispute between wind turbine maker Vestas and Finnish company Fortum over a scrapped deal to supply windmills to Russia.

Danish government involved in Vestas dispute over Russian windmills
Vestas is in an ongoing dispute with Finnish energy company Fortum. The Danish foreign ministry says it has contacted Finland through relevant channels. File photo: Dado Ruvic/Reuters/Ritzau Scanpix

Foreign Minister Lars Løkke Rasmussen has become involved in a dispute between the two companies over four windmill parks that were planned for construction in Russia but cancelled following Moscow’s invasion of Ukraine, broadcaster DR reports.

Following the Russian attack on Ukraine, which began in February 2022, Vestas joined scores of other Western companies in withdrawing its operations from the Russian market.

The Danish company also says that EU sanctions prevent a wind turbine contract with Finnish energy supplier Fortum from being fulfilled.

The two sides have become entangled in an arbitration case that could cost Vestas as much as 1.5 billion kroner.

Rasmussen has not commented directly but the foreign ministry confirmed to DR that the matter was being discussed with Finland.

“At the request of Vestas, the Ministry of Foreign Affairs has taken the matter up with the Finnish authorities through all relevant channels,” it said.

“From the Finnish side the response was that this is seen as a matter between two companies which must be resolved according to the conditions in the contract between them,” it said.

The agreement to supply the wind turbines was signed between Vestas and Fortum in September 2021, almost six months before Russia invaded Ukraine.

Danish Conservative party leader Søren Pape Poulsen has previously said he thinks the Finnish government should stop the legal case, and called for Rasmussen or Prime Minister Mette Frederiksen to renew discussions with Finland on that basis.

In a written comment, Fortum told DR it did not agree with the outline of the situation given by Vestas.

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BUSINESS

Maersk profits plummet as Yemeni attacks close off Red Sea route

Danish shipping giant Maersk posted a huge drop in net profit for the first quarter on Thursday as Yemeni rebel attacks are forcing it to avoid the vital Red Sea route.

Maersk profits plummet as Yemeni attacks close off Red Sea route

Maersk reported a net profit of $177 million in the first three months of the year, a 13-fold drop from the same period last year. Turnover fell 13 percent to $12.4 billion, slightly lower than forecast by analysts surveyed by financial data firm FactSet.

The company, however, raised its outlook for the full year, citing higher demand and increased rates and costs due to the supply chain disruptions in the Red Sea.

It now expects an underlying core profit ranging between $4 billion and $6 billion, up from $1 billion-$6 billion previously.

“We had a positive start to the year with a first quarter developing precisely as we expected,” Maersk chief executive Vincent Clerc said in a statement.

“Demand is trending towards the higher end of our market growth guidance and conditions in the Red Sea remain entrenched,” he said.

“This not only supported a recovery in the first quarter compared to the previous quarter, but also provide an improved outlook for the coming quarters, as we now expect these conditions to stay with us for most of the year.”

Iran-backed Huthi rebels, who control the Yemeni capital Sanaa and much of the country’s Red Sea coast, have launched dozens of attacks on ships since November, claiming solidarity with Palestinians caught up in the Israel-Hamas war.

The United States in December announced a maritime security initiative to protect Red Sea shipping from the attacks, which have forced commercial vessels to divert from the route that normally carries 12 percent of global trade.

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