Legal Clash over Hanhikivi-1: Rosatom vs Finland

Russia's Rosatom sues Finland’s Fortum and Outokumpu for $2.8 billion over the termination of the Hanhikivi-1 nuclear plant contract. The project, aimed at building a 1.2 gigawatt plant, was halted due to geopolitical risks. The legal battle includes significant financial claims and involves international arbitration.

In a significant legal dispute, Russia's state-owned Rosatom has initiated legal proceedings against Finnish companies Fortum and Outokumpu. The claim, filed in Moscow, seeks a staggering 227.8 billion roubles ($2.8 billion) in compensation. Rosatom accuses the Finnish firms of unlawfully terminating the EPC contract for the Hanhikivi-1 nuclear plant construction in Finland.

The original contract, signed in 2013, aimed to construct a 1.2 gigawatt power plant, with investments ranging up to 7 billion euros. The Finnish side, citing extensive delays and geopolitical risks stemming from Russia's Ukraine invasion, terminated the contract in May 2022 before construction began. The Finnish consortium Fennovoima, which includes Fortum and Outokumpu, has sought international arbitration for the return of advance payments.

In 2023, Fortum lost control of its Russian energy investments after Russia temporarily seized its assets, as per President Vladimir Putin's directive. The ongoing legal and financial disputes between the involved parties are under arbitration in international courts, marking a critical point in Russian-Finnish business relations.

(With inputs from agencies.)