SUBSCRIBE
PROFILE

Fennovoima Oy dismissed by the Dispute Review Board

Fennovoima Oy has announced the termination of its contract with the Russian company Rosatom for the construction of a reactor in Hanhikivi.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99$/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Fennovoima Oy has announced the termination of its contract with the Russian company Rosatom for the construction of a reactor in Hanhikivi.

The repercussions of the conflict

Fennovoima Oy, due to the war in Ukraine, announces the termination of the contract for the construction of Hanhikivi in Finalnde. The Dispute Review Board (DRB) confirms that this termination is illegal. In fact, Fennovoima Oy illegally rejects the work by RAOS Project Oy, a subsidiary of Rosatom.

The Dispute Review Board thus establishes the possibility for Rosatom to claim compensation from the Finnish company. According to Rosatom, this abusive breach of contract occurred at a time when the preparatory work for Hanhikivi was being finalized. Thus, in early 2022, Fennovoima Oy announced that the licensing work was reaching the “home stretch”.

These elements allowed the Dispute Review Board to find in favor of Rosatom. However, the Finnish government wanted to achieve rapid independence from Russian energy production. In this context of Russian-Ukrainian conflict, the Finnish Minister of Economic Affairs announced that he would not issue building permits.

A costly dispute

In May 2022, Fennovoima Oy terminated the contract for the construction of Hanhikivi, due to significant delays. The company also claimed that it was impossible for Rosatom to deliver the project in the context of the war in Ukraine. Rosatom is claiming $3 billion from Fennovoima Oy, which is claiming $2 billion from Rosatom.

The Hanhikivi plant was to have a capacity of 1200MW. Thus, it was to meet 10% of Finland’s energy demand. Finally, Fennovoima Oy announced the start of construction in 2023 and commercial operation in 2029.

The chosen plant model was the Rosatom AES-2006 pressurized water reactor. The other bidders for the project were Areva and Toshiba. On the other hand, Russia was exerting pressure to maintain the project by exploiting the investments of the Finnish Fortum in Russia.

  • Popular on energynews.pro
Japan opens public funding for nuclear projects to support reactor restarts
Awendio Solaris to invest CAD1bn in integrated solar plant in Montreal
Shanghai Electric launches 625 MW upgrade to strengthen Iraq’s power grid
Iran offers support to Venezuela after oil tankers seized by Washington
Subsea 7 extends Equinor contract for subsea services in Norway
Sweden: Videberg Kraft files first request for public aid to build two nuclear reactors
Videberg Kraft AB becomes the first company to request government support to build two new reactors at the Ringhals site, under the national nuclear investment framework adopted in 2025.
Brussels investigates €30bn public loan for two reactors in Czechia
The European Commission opens an in-depth investigation into Prague's public funding of a major nuclear project, which could reach €30bn ($32.88bn), with guaranteed revenues over forty years.
Japan approves restart of Kashiwazaki-Kariwa, its largest nuclear power plant
Niigata's assembly officially backs the restart of the Kashiwazaki-Kariwa site, marking a key step in Japan’s return to nuclear energy following the 2011 Fukushima disaster.
Newcleo launches European safeguards process for lead-cooled modular reactor
French nuclear reactor developer Newcleo has submitted its lead-cooled small modular reactor design to Euratom, initiating the first regulatory phase to integrate nuclear non-proliferation safeguards at the European level.
EDF raises cost estimate for six new nuclear reactors to €72.8 billion
French state utility EDF has increased the maximum estimated cost for building six new nuclear reactors to €72.8 billion ($85.29 billion), representing a 40% rise over the original figure.
Holtec and MVM join forces to deploy small nuclear reactors in Hungary
US-based Holtec has signed a memorandum of understanding with Hungary’s energy group MVM to assess the deployment of its SMR-300 technology, strengthening bilateral nuclear cooperation and opening prospects for a new market in Central Europe.
Radiant raises $300mn to industrialise its micro nuclear reactors in the United States
California-based startup Radiant has secured $300mn to build its first factory in Tennessee and prepare for the mass production of miniature nuclear reactors for off-grid applications.
Terra Innovatum accelerates licensing process for its SOLO™ reactor with the NRC
Terra Innovatum has increased its interactions with the Nuclear Regulatory Commission to advance licensing of its SOLO™ micro-modular reactor, despite the partial shutdown of the US federal government.
Clinton and Dresden nuclear reactors granted 20-year licence extensions
The US nuclear regulator has extended the operating licences of three Illinois reactors by 20 years, strengthening Constellation's long-term industrial outlook for the Clinton and Dresden sites.
Orano and the University of Pau launch EUR2.3mn programme to explore new uranium deposits
The SATURNE Industrial Chair aims to develop innovative uranium extraction methods, with joint funding from Orano and the National Research Agency over a four-year period.
X-energy secures Doosan forgings for its SMR reactors
US-based X-energy has signed a reservation agreement with South Korea's Doosan Enerbility to secure key components for its small modular nuclear reactors.
Niger signs strategic deal with Russia to revive uranium mining
Niger expands its mining alliances with Uranium One to develop new sites, while the Dasa project continues seeking financing despite clear political backing.
Samsung Heavy Industries secures certification for floating nuclear platform with SMART100
Samsung Heavy Industries has received Approval in Principle for a floating nuclear plant featuring two SMART100 reactors, marking a step toward the commercialisation of offshore small modular reactors.
India unveils draft law to open its nuclear sector to private investment
The Indian government proposes a unified legal framework for nuclear energy, aiming to boost private investment and increase installed capacity to 100 GW by 2047.
Samsung C&T expands nuclear projects in Europe with Synthos Green Energy
Samsung C&T strengthens its presence in modular nuclear energy in Europe by signing an agreement with Synthos Green Energy to develop up to 24 SMRs in Poland and several Central European countries.
nT-Tao develops control method to stabilise power delivery in fusion systems
Israeli firm nT-Tao and Ben-Gurion University have developed a nonlinear control system that improves energy stability in fusion plasmas, strengthening the technical foundation of their future compact reactors.
India opens nuclear sector to private companies with landmark bill
The Indian government has introduced a bill allowing private companies to build and operate nuclear power plants, ending a state monopoly in place for over five decades.
Natura launches DOE authorisation process for its MSR-1 reactor in Texas
Natura Resources enters a new regulatory phase for its molten salt reactor MSR-1, following the signing of a framework agreement with the US Department of Energy under the Reactor Pilot Program.
Norway consults 22 municipalities about hosting nuclear waste facilities
Norwegian Nuclear Decommissioning is surveying 22 localities to assess their interest in hosting storage facilities for radioactive waste from the country’s former research reactors.
Flamanville EPR reactor reaches 100% nuclear power after 12-year delay
Electricité de France's Flamanville 3 reactor has reached full power for the first time, marking a key industrial milestone in the deployment of EPRs in Europe, despite cost overruns reaching EUR23.7bn ($25.7bn).

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

START - 99$/year

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.