Rosatom reports ICC ruling against termination of Hanhikivi-1 contract

Rosatom said on October 10 that an ICC tribunal had found Fennovoima's unilateral termination of the Hanhikivi-1 nuclear-plant contract in Finland unlawful. The Finnish company meanwhile highlighted a financial outcome in its favour.

According to Rosatom, the tribunal also found that the project was progressing when the agreement ended and that Russian companies had made headway towards obtaining a construction licence. RIA Novosti and Interfax carried the corporation's account.

Reuters reported a different part of the ruling as described by Fennovoima. The Finnish company said that, after offsetting the parties' claims, Rosatom subsidiaries had been ordered to pay it a net €606 million plus interest. The parties are therefore emphasising different aspects of the same arbitration.

The Hanhikivi-1 agreement was signed in 2013. The project envisaged a single 1,200 MW generation 3+ reactor, with investment estimated at €7 billion to €7.5 billion.

Expected orders for companies in Finland and other EU countries were valued at €1.8 billion to €2.7 billion. The proposed plant was intended to meet about 10% of Finland's electricity needs.

Fennovoima ended the agreement in May 2022, citing project delays and changes in the political situation. Rosatom disputed the grounds for termination.

In December 2022, a Dispute Review Board, or DRB, had already found the termination unlawful. Fennovoima said then that the DRB recommendation was neither final nor binding because the parties had submitted notices of dissatisfaction. That earlier process is distinct from the current ruling under ICC rules.