Following the unilateral termination of its construction contract by Rosatom’s Finnish partner, legal action has been taken by Rosatom.
After its Finnish partner unilaterally cancelled its construction contract, Rosatom has begun legal proceedings against the Finnish company.
According to the Interfax news agency, which cited representatives from Rosatom, the Russian state energy giant Rosatom has filed six lawsuits totaling $3 billion against the Finnish company Fennovoima over the termination of a contract for the construction of a nuclear power plant on Finland’s Hanhikivi peninsula. These lawsuits were filed in response to the termination of the contract for the construction of the nuclear power plant.
The CEO of Fennovoima, Joachim Specht, was quoted as saying to the Helsingin Sanomat news outlet on Monday that his company had initiated arbitration proceedings against Rosatom.
This report occurred after Mr. Specht made this statement.
Because of the construction delays, the Finnish company, Fennovoima, is requesting that the Russian company refund the monies that were set aside for the nuclear power plant project. Fennovoima blames the delays on the Russian company.
According to Specht, the Finnish government is seeking compensation from Rosatom in the amount of €2 billion (nearly $2 billion). Of this amount, €800 million would reimburse the advance payment made by Fennovoima to RAOS Project (Rosatom’s Finnish subsidiary).
“The statements made by Mr. Specht during the interview that Rosatom has not yet initiated the legal actions are not accurate.
According to representatives of Rosatom who spoke with Interfax, the company has already initiated six cases with a combined value of $3 billion.
According to statements made in the past by Aleksey Likhachev, the Director General of Rosatom, Fennovoima did not have any grounds for cancelling the contract, and Rosatom was prepared to apply for international arbitration in order to recoup the funds that it had spent on the project up until this point.
According to Specht, Rosatom alerted Fennovoima, in which it maintains a 34% share, about anticipated delays in the project in the beginning of 2022. Specifically, Rosatom cautioned that there was a danger of the project being delayed for several years.
The Finnish side cancelled the contract with Rosatom on their own accord at the beginning of May, and they later withdrew their application for a licence to begin construction.
According to Fennovoima, the project, which was originally scheduled to begin in 2013, has already been delayed for several years. Furthermore, the Russian military intervention in Ukraine has further increased the dangers associated with the project’s effective implementation.