The arbitration found it illegal for Finland to terminate the contract with Russia on the nuclear power plant

The International Arbitration Court of the International Chamber of Commerce has declared Finland's unilateral termination of the contract with Rosatom for the construction of the Hanhikivi-1 nuclear power plant illegal, the Russian nuclear state corporation reported.

“Another victory for Rosatom ends a long-term legal battle between the Russian state corporation and the Finnish company Fennovoima. The International Arbitration Court of the International Chamber of Commerce (ICC) declared illegal the unilateral termination of the contract by the Finnish side for the construction of a nuclear power plant, the construction of which was carried out by Rosatom,” the statement says.

Rosatom noted the conclusions from this decision.

“The proceedings under the rules of the International Chamber of Commerce not only recognized the decision of the Fennovoima company as unlawful, but also recorded that on the date of termination the project was moving forward dynamically, and Rosatom companies were demonstrating progress in obtaining a license for the construction of nuclear power plants,” the message emphasizes.

The contract for the construction of the Hanhikivi-1 nuclear power plant in northern Finland was signed by Fennovoima and Rosatom in 2013 and envisaged the construction of one power unit with a capacity of 1,200 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.