A ruling by an International Chamber of Commerce (ICC) tribunal has sided with Rosatom, Russia’s state-owned nuclear corporation, in its ongoing conflict with Finnish energy company Fennovoima over the abandoned Hanhikivi-1 nuclear plant. The tribunal concluded that Fennovoima’s decision to cancel the €7 billion project in May 2022, citing substantial delays and heightened geopolitical concerns after Russia’s invasion of Ukraine, constituted an unjustified contract termination, Rosatom stated.
The tribunal found that Fennovoima had unlawfully terminated the contract for the construction of the planned plant in northern Finland. Rosatom stated that the project was making good progress when it was terminated. The contract to build the 1.2 gigawatt plant was signed in 2013 with Fennovoima, a consortium in which Finnish stakeholders held two-thirds and the Russian side held one-third.
Rosatom Director General Alexey Likhachev said, “Today’s victory is important, but not final. We will continue to prove that we are right regarding the Finnish project in courts of various instances.” The dispute between Rosatom and Fennovoima has been ongoing since the project’s termination, with Fennovoima winding down its operations and primarily engaging in legal proceedings.
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The tribunal’s decision deemed the May 2022 contract termination by Fennovoima unlawful, ruling that the project was progressing well at the time of cancellation. The contract origins date back to December 2013, when Fennovoima signed an EPC contract with Rosatom’s subsidiary Rosatom Overseas for a 1,200 MW VVER-1200 reactor, with production initially planned for 2024.
Rosatom will continue to pursue its claims in various courts, as stated by Director General Alexey Likhachev. The company is determined to prove its position regarding the Finnish project. Fennovoima, on the other hand, has been focused on winding down its operations and engaging in legal proceedings since the project’s termination.
The contract for the project was signed in 2013, and the project was initially expected to be completed by 2024. However, significant delays and political risks following Russia’s conflict in Ukraine led to the project’s cancellation in May 2022. The tribunal’s decision has deemed this cancellation unlawful, and Rosatom will continue to pursue its claims in various courts.
