Rosatom, Russia’s state nuclear energy corporation, has initiated legal proceedings against Finnish energy company Fortum and steel manufacturer Outokumpu.
The company is demanding compensation of Rbs227.8bn for the cancellation of the Hanhikivi-1 nuclear power plant (NPP) contract, according to a report by Reuters.
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The lawsuit, filed in Moscow, cites “unlawful termination” of the construction contract and related agreements.
The Hanhikivi-1 project contract, which was set to be a 1.2GW NPP with investments of around €6.5–7bn ($7.3–7.9bn), was signed in 2013.
However, the Finnish consortium Fennovoima, which includes Outokumpu and Fortum, terminated the contract in May 2022, citing significant delays and geopolitical risks following Russia’s military actions in Ukraine.
Fennovoima has since sought international arbitration to recover €1.7bn in advance payments, to which Rosatom has filed counterclaims totalling €3bn.
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By GlobalDataThese legal disputes are currently under consideration in international courts.
Fortum, which had been a significant investor in Russia’s energy sector, faced a setback in 2023 when it lost control of its Russian assets due to a decree by President Vladimir Putin.
Additionally, following a devastating earthquake in Myanmar, Rosatom announced plans to proceed with the construction of an NPP there.
The quake, which struck in March with a magnitude of 7.7, resulted in more than 3,700 fatalities.
Nevertheless, Rosatom’s commitment to the small modular reactor project in Myanmar, which will initially feature two 55MW reactors totalling 110MW, remains firm.
In September of last year, Rosatom also began installing the inner containment structure for the reactor building of Unit 2 at the El-Dabaa NPP in Egypt.
This serves as a vital safety feature, intended to prevent the release of radioactive materials into the environment should an emergency occur.
