Rosatom Files $2.8 Billion Lawsuit Against Finnish Companies
MOSCOW (Reuters) -Russia's Rosatom has filed a lawsuit in Moscow against Finland's Fortum and Outokumpu, demanding 227.8 billion roubles ($2.8 billion) in compensation for losses over the termination of a contract for the Hanhikivi-1 nuclear power plant in Finland, court documents and Rosatom's statement show.
Rosatom is seeking compensation for losses caused "by the unlawful termination of the EPC contract" for the construction of the nuclear power plant, "violations of the shareholder agreement, the fuel supply contract, and the refusal to repay the loan", company said on Monday.
The contract to build 1.2 gigawatt plant with investments estimated at 6.5-7 billion euros was signed in 2013, but the Finnish side terminated it in May 2022, before construction started. The decision was based on significant delays, geopolitical risks due to Russia's invasion of Ukraine, and doubts about the possibility of starting the project.
Fennovoima, a consortium in which Finnish stakeholders including Outokumpu, Fortum and SSAB own two thirds, had launched international arbitration, aiming to return of 1.7 billion euros of advance payments. Rosatom filed counterclaims for 3 billion euros in total. The cases are under arbitration in international courts.
Fortum was a major foreign investor in Russia's energy sector, however in 2023 it lost control of its Russian assets, when Russia temporarily took over seven thermal power units and a joint-venture portfolio of wind and solar plants from Fortum under a decree by President Vladimir Putin.
(Reporting by Anastasiya Lyrchikova; Writing by Gleb Stolyarov; Editing by David Evans)
