Fennovoima Terminates Nuclear Power Plant Contract With Russia

Finnish energy company Fennovoima has terminated its contract of plant delivery with Russian state corporation Rosatom.

Fennovoima said in a press release on Monday that the company has decided to terminate its contract with Rosatom because of the latter’s “inability to deliver the project.” The Finnish company also said that the war in Ukraine posted greater risks, which RAOS Project, a subsidiary of Rosatom, has failed to mitigate.

Fennovoima signed a turnkey contract with RAOS Project in 2013. The Hanhikivi 1 NPP Project was supposed to construct a single-unit nuclear power plant in Pyhäjoki, Northern Ostrobothnia. 

In November 2021, RAOS Project was completed and sent to Fennovoima for review of the key technical licensing document for Hanhikivi 1. The Russian company said in December it had finalized the technical design for the project.

Joachim Specht, Fennovoima’s CEO, said that the contract termination is expected to impact employees and supply chain companies.

“Our main objective is to support our employees by keeping them informed and work in close cooperation with both our employees and employee representatives. In addition, we focus on preserving the site,” Specht said.

Esa Härmälä, Fennovoima’s chairman of the Board, said the company will do its best to mitigate the negative impacts of the contract termination.

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