The CEO of Fennovoima complained about the arbitration decision on the project with Rosatom
Quick Look
- The International Arbitration Court of the International Chamber of Commerce has declared the unilateral termination by the Finnish party of the contract with Rosatom for the construction of the Hanhikivi-1 nuclear power plant illegal.
- Fennovoima CEO Matti Suurnäkki called the decision a disappointment, noting that the company was confident there were grounds for terminating the contract.
- The contract for the construction of a 1200 MW power unit was signed in 2013, the investment volume was estimated at 7-7.5 billion euros.
AI-generated summary
Why It Matters
The contract for the construction of the Hanhikivi-1 nuclear power plant was signed in 2013 between Fennovoima and Rosatom for the construction of one power unit with a capacity of 1200 MW according to the generation 3+ project. The volume of investments was estimated at 7-7.5 billion euros.
The International Arbitration Court of the International Chamber of Commerce has declared illegal the Finnish side's unilateral termination of the contract with Rosatom for the construction of the Hanhikivi-1 nuclear power plant, the Russian nuclear state corporation reported.
Matti Suurnäkki, CEO of the Finnish company Fennovoima, called the decision of the International Arbitration a disappointment.
“This (decision - ed.) is a disappointment for us,” the Helsingin Sanomat newspaper quotes Suurnakki as saying.
He added that the company was confident that there were grounds for terminating the contract with the Russian corporation. According to him, from a financial point of view, there are both negative and positive aspects of the decision.
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.
What to Watch
AI outlook — possibilities, not facts
The parties can continue to negotiate the contract or seek compensation through the courts
Possible · Within months
Open Questions
- What financial consequences will the arbitration decision have for Fennovoima and Rosatom?
- Will the Hanhikivi-1 NPP project continue after the arbitration decision?
- What further steps are planned by the parties to the dispute?
