Russia’s Rosatom axed from Finnish nuclear project

By Mike Hayes03 May 2022

A Finnish-led consortium has terminated its contract with the Russian energy group Rosatom, to build a €7.5 billion nuclear power plant in northern Finland.

A view of the Hanhikivi 1 nuclear power plant construction site in northern Finland. Photo: ReutersConnect

The chairman of the Fennovoima consortium, Esa Harmala, said the war was not the primary reason for cutting ties with Rosatom on the 1,200MW Hanhikivi 1 project.

He said, “The contract has been cancelled due to delays and the inability to deliver, and we have seen that the war has increased these risks.”

Construction of the plant was set to begin next year, with electricity production expected to commence in 2029.

Rosatom currently holds a 34% stake in the project and it is not known whether it will retain this holding moving forward.

In response to the announcement, Rosatom said it was surprised, as it felt the project was “progressing” and said it might take legal action on the matter.

In a statement, the company said, “The reasons for such a decision are completely incomprehensible,” adding that it reserved the right “to defend our interests in accordance with the current contracts and current law.”

When asked whether the consortium will look to scrap the project or find an alternative partner, Harmala said “It is too early to speculate on the future of the project.”

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