A view shows a board with the logo of Russian atomic energy agency Rosatom at the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia June 5, 2024.
Rosatom stated it is pursuing compensation for damages caused: “by the unlawful termination of the EPC contract” for the nuclear plant’s construction, “violations of the shareholder agreement, the fuel supply contract, and the refusal to repay the loan.” The contract, signed in 2013, involved building a 1.2-gigawatt facility with investments estimated at 6.5-7 billion euros. The Finnish side, led by the Fennovoima consortium, terminated the agreement in May 2022 before construction began, citing significant delays and concerns about project feasibility.
Fennovoima, where Finnish stakeholders including Fortum, Outokumpu, and SSAB hold a two-thirds share, has initiated international arbitration to recover 1.7 billion euros in advance payments. Rosatom responded with counterclaims totaling 3 billion euros. These disputes are currently under review in international courts.
The termination of the Hanhikivi-1 project reflects challenges in the collaboration between the parties. Fortum, previously a significant investor in Russia’s energy sector, faced changes in 2023 when Russia temporarily assumed control of its assets, including seven thermal power units and a portfolio of wind and solar plants, under a presidential decree.
The lawsuit and arbitration proceedings highlight ongoing financial and contractual disputes between Rosatom and the Finnish companies, with significant sums at stake. The resolution of these cases will likely influence future energy partnerships and investment decisions in the region.
