Rosatom: the amount of penalties from Finland will be determined after the courts

Brief retelling from RIA II

The International Arbitration Court of the International Chamber of Commerce (ICC) declared the unilateral termination by the Finnish company Fennovoima of the contract with Rosatom for the construction of the Hanhikivi-1 nuclear power plant illegal.

The final amounts to be recovered from Finland will be determined based on the results of all legal proceedings initiated by Rosatom.

MOSCOW, October 10 - RIA Novosti. The final amounts to be recovered from Finland for breaking the contract for the construction of the Hanhikivi-1 nuclear power plant will be determined based on the results of all lawsuits initiated by Rosatom, the Russian nuclear state corporation said.

As Rosatom reported, the International Arbitration Court of the International Chamber of Commerce (ICC) declared the unilateral termination of the contract with Rosatom for the construction of the Hanhikivi-1 nuclear power plant by the Finnish company Fennovoima illegal.

“In addition to the dispute over the legality of termination of the contract, which Fennovoima lost, the state corporation initiated other disputes to protect its interests. The final amounts to be recovered from the Finnish side will be determined based on the results of all legal proceedings,” the statement says.

In 2024, it was reported that Rosatom filed claims against Finland in international arbitration for approximately three billion euros due to the Finnish side’s refusal to build the Hanhikivi-1 nuclear power plant. It was also reported that the Russian side is demanding early repayment of a loan of 920.5 million euros provided to Fennovoima, as well as compensation for the value of its assets.

The contract for the construction of the Hanhikivi-1 nuclear power plant in northern Finland was signed by the Finnish company Fennovoima and Rosatom in 2013 and envisaged the construction of one power unit with a capacity of 1200 MW according to the latest generation 3+ project.

The volume of investment in the project was estimated at 7-7.5 billion euros, the volume of localization for companies from Finland and other EU countries was expected to range from 1.8 to 2.7 billion euros. The station was supposed to cover 10% of Finland's total electricity needs. However, in May 2022, Fennovoima terminated the contract, citing Rosatom’s alleged violation of project deadlines, as well as the worsening political situation.