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Rosatom, the Russian nuclear company, has sued Finnish companies for $2.8 billion over a nuclear plant contract

Court documents and Rosatom’s statement indicate that Rosatom filed a lawsuit against Finland’s Fortum and Outokumpu in Moscow, claiming 227,8 billion roubles (2.8 billion dollars) as compensation for losses resulting from the termination of the contract for the Hanhikivi-1 Nuclear Power Plant in Finland.

Rosatom, which announced its intention to seek compensation on Monday, is seeking compensation "for losses caused by the unlawful termination" of the EPC contract for the construction and operation of the nuclear power station, as well as "violations of shareholder agreements, fuel supply contracts, and refusal to repay loan".

The contract for the construction of a 1.2 gigawatt power plant, with estimated investments between 6.5-7 billion euro was signed in 2013. However, in May 2022 before construction began, the Finnish side cancelled it. The decision was made due to significant delays, geopolitical risk from Russia's invasion in Ukraine and doubts over the feasibility of the project.

Fennovoima is a consortium of Finnish investors, including Outokumpu and Fortum, which owns two-thirds of the company. The consortium had filed an international arbitration seeking to recover 1.7 billion euro in advance payments. Rosatom has filed counterclaims totaling 3 billion euros. Arbitration is being conducted in international courts.

Fortum, a major investor in Russia's Energy Sector, lost its Russian assets in 2023 when Russia took control of seven thermal power plants and a joint venture portfolio of wind and Solar Plants under a presidential decree. (Reporting and writing by Anastasiyalyrchikova, Editing and editing by David Evans).

(source: Reuters)