News

07 May, 2025

Rosatom files RUB 228 billion claim against Finnish companies Fortum and Outokumpu

Business NewsForeign Business

Entities of the state corporation Rosatom – JSC TVEL, JSC Rusatom Energy International, and RAOS Projects Oy – have filed a claim in the Moscow Arbitrazh Court against Finnish companies Fortum (an energy holding) and Outokumpu (a steel manufacturer). They are demanding RUB 227.8 billion from their former partners, according to the arbitrazh case database.

Among the defendants listed in the case are Fortum Holding B.V. and Fortum Russia B.V., which jointly own nearly 100% of the power-generating PJSC Fortum. By decree of President Vladimir Putin in April 2023, the shares of Fortum (now renamed “Forward Energo”) were transferred to the temporary management of Rosimushchestvo.

The Rosatom entities filed the claim on 30 April, but the text of the claim has not been published in the case file. Rosatom told Interfax that the claim concerns compensation for damages caused by the unlawful termination of the EPC contract for the construction of the Hanhikivi-1 nuclear power plant in Finland, breach of the shareholders’ agreement, breach of a fuel supply contract, and refusal to repay a loan. Fortum and Outokumpu were minority participants in the Hanhikivi nuclear project.

The state corporation also recalled that in December 2022, the Dispute Review Board (an arbitration body under the International Chamber of Commerce in Paris) confirmed that the unilateral termination of the EPC contract by the customer (Fennovoima) was unlawful. “Rosatom continues to protect its legitimate interests and seek full compensation for the losses incurred”, the company emphasised.

RAOS Project Oy had previously attempted to involve Fortum in international arbitration proceedings regarding the Hanhikivi project. Fortum itself denied having any contractual relationships, obligations, or arbitration agreements with RAOS Project. In February 2025, the International Chamber of Commerce in Paris – where part of the dispute is being examined – ruled not to include Fortum in the arbitration process.

Finnish company Fennovoima and Rosatom signed a contract in 2013 for the construction of the Hanhikivi-1 nuclear power plant in northern Finland. The plan was for the 1.2 GW power unit to be built using Russian VVER-1200 technology. The project’s cost was estimated at EUR 7–7.5 billion. Rosatom was to allocate EUR 5 billion for the construction, of which EUR 2.4 billion was to come from the National Wealth Fund. The project faced multiple delays. For example, Fennovoima was unable to obtain a construction licence, citing heightened requirements from Finland’s Radiation and Nuclear Safety Authority (STUK).

After the start of the military operation in Ukraine, Fennovoima announced it was terminating its contract with RAOS Project, citing delays in fulfilling obligations on the Russian side. Rosatom filed several claims against Fennovoima demanding the return of EUR 920.5 million allocated to the project and compensation for the value of its shares in the Finnish company. The total claim amounted to around EUR 3 billion. In turn, Fennovoima is demanding the return of a EUR 1.75 billion advance payment allocated for the construction of the project through international arbitration.

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