On May 2, 2022, the Finnish design company Fennovoima unilaterally terminated the contract with Rosatom structures for the construction of the Hanhikivi-1 nuclear power plant due to the start of the nuclear power plant by Russia in Ukraine and three weeks later withdrew the license application for the construction of a power plant on the Pyhäjoki site, saying that all work has been stopped. In December 2022, the International Dispute Resolution Board (DRB) invalidated the termination of a contract signed in 2013 for the construction of a nuclear power plant, which was scheduled to be commissioned in 2029.
To date, JSC Atomenergoprom (part of Rosatom) has filed six international arbitration claims amounting to around 3 billion euros for the unjustified termination of the said contract. In addition, the Finnish company had to prepay a loan of 920 million euros, issued by the Russian side to finance the construction of a nuclear power plant. This is stated in the annual report of JSC Atomenergoprom in accordance with the International Financial Reporting Standard.
Thus, the structures of Rosatom want to protect their interests by making the Finns answerable for the breach of obligations. It should be noted that the Finns justified the breach of the contract by “breaking the supply chains”. However, this is not true, because all foreign projects of Rosatom are carried out according to plan. So, in Hungary (a country of the EU and without access to the sea), the Paks-2 nuclear power plant is being built, in Turkey – the Akkuyu nuclear power plant, and in Egypt – the Akkuyu nuclear power plant. El Dabaa. At the same time, Finland borders Russia, so there is no need to talk about a violation of logistics, but the Finns completely violated logic. For this they will have to pay, which will be a lesson for others.
We remind you that when Fennovoima announced the termination of the contract, Rosatom did not immediately take legal action, but demanded compensation for the costs already incurred. Instead, the Finns took legal action against Rosatom, demanding 1.7 billion euros for no reason. It was after this that Rosatom began to “re-educate its partner”.
Russian economist Konstantin Dvinsky drew his attention to what was happening. He noted that the Finns had already lost to Gazprom in arbitration.
Probably now they also want to lose to Rosatom. Moreover, there is a precedent. At one time, Rosatom received compensation from Bulgaria for the cancellation of the Belene nuclear power plant project. Generally speaking, I think it is time for the Finns to follow the example of the “best” – in Germany this week the last three nuclear power plants are closed and the intention to increase the share of renewable energy to 80% by 2030 has been “firmly and clearly” announced
– wrote the expert.
Photos used: Fennovoima/flickr.com
Read the latest news about politics and governments from around the world on The Eastern Herald .