Finnish Fennovoima is preparing for court proceedings with Rosatom and the recovery of almost 800 million euros

The Finnish design company Fennovoima Oy, which was the customer for the construction of the Hanhikivi-1 nuclear power plant under the Rosatom project, is preparing for litigation with the Russian company and the payment of an advance of 799.8 million euros, according to the business publication Kauppalehti, citing the company’s financial statements.
Earlier in June, Aleksey Likhachev, Director General of the Russian nuclear state corporation Rosatom, said that the refusal of the Finnish government from the Hanhikivi-1 nuclear power plant project with Russia is legally “absolutely vulnerable”, Rosatom has a great chance to return the money spent in court. Likhachev did not specify the legal aspects for possible legal claims.
“Although the reasons for terminating the contract with Fennovoima are good, despite this, there is a risk that the companies of the Rosatom group may sue Fennovoima. The most significant foreseeable risks are related to the recovery of losses caused by the violation of the EPC agreement and the recovery of an unpaid advance payment in the amount of 799.8 million euros.
It is clarified that at the moment no requirements have been made against Fennovoima.
Fennovoima has two owners: Finnish Voimaosakeyhtiö SF (66%) and Russian RAOS Voima (34%).
Voimaosakeyhtiö SF is the majority owner of Fennovoima and its shareholders include major companies operating in Finland such as Outokumpu, SSAB, SRV and Fortum, as well as numerous local energy companies.