Russia’s state nuclear corporation Rosatom has launched a high-stakes lawsuit in Moscow against Finnish companies Fortum and Outokumpu, seeking 227.8 billion roubles (approximately $2.8 billion) in damages related to the cancelled Hanhikivi-1 nuclear power plant project in Finland.
The lawsuit alleges unlawful termination of the EPC (engineering, procurement, and construction) contract and further violations of a shareholder agreement, a nuclear fuel supply deal, and an outstanding loan that Rosatom claims has not been repaid. The contract to construct the 1.2-gigawatt power plant was originally signed in 2013, with planned investments estimated at €6.5–7 billion. However, the Finnish government terminated the agreement in May 2022, citing geopolitical risks following Russia’s invasion of Ukraine, project delays, and overall uncertainty surrounding the project’s feasibility.
Fennovoima, the Finnish-led consortium behind the Hanhikivi-1 project—of which Outokumpu, Fortum, and SSAB are key stakeholders—responded by initiating international arbitration proceedings to reclaim €1.7 billion in advance payments. Rosatom, in turn, filed counterclaims totaling €3 billion. Both cases are currently being heard in international courts.
Fortum, once a major foreign investor in Russia’s energy sector, has faced growing losses in the country. In 2023, it effectively lost control of its Russian operations when the Kremlin, under a presidential decree by Vladimir Putin, temporarily seized control of Fortum’s power plants and renewable energy assets.