Finland terminates Russian nuclear power plant contract

Finnish energy company Fennovoima has terminated the contract it had awarded to Rosatom subsidiary RAOS Project to build the Hanhikivi 1 nuclear power plant, citing “significant delays and inability to deliver the project”.

In a statement Monday, Fennovoima said: “There have been significant and growing delays during the last years. The war in Ukraine has worsened the risks for the project. RAOS has been unable to mitigate any of the risks.”

The termination was immediate, halting RAOS Project’s design and licensing work and other works at the Hanhikivi 1 site.

“Unfortunately, the termination of the EPC contract is estimated to have a significant employee impact in Fennovoima and is expected to impact also the supply chain companies and Pyhäjoki region,” said Joachim Specht, Fennovoima’s chief executive.

“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,” he added.

Esa Härmälä, chairman of the Fennovoima board, said: “The decision to terminate the EPC contract with RAOS Project is not made lightly. In a such a large project there are significant complexities and decisions are made only after thorough considerations. We fully acknowledge the negative impacts and do our best to mitigate those.”

According to Finnish national broadcaster YLE, the Hanhikivi 1 plant in Pyhäjoki, Northern Ostrobothnia, was to have been the country’s third nuclear power plant, and its first new one since the 1970s.

It said Fennovoima signed the turnkey contract in 2013.

Fennovoima is a consortium including Finnish industrial firms and municipal energy companies.

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