In its findings, the Dispute Review Board (DRB) confirmed that Fennovoima Oy had unlawfully terminated the EPC contract for the construction of Hanhikivi-1 NPP, and thereafter unlawfully purported to reject the works performed by RAOS Project Oy as the Supplier under the EPC contract.
The DRB also found that Fennovoima Oy’s unlawful termination of the Hanhikivi-1 NPP project was in breach of the EPC contract, which gives RAOS Project Oy the right to claim damages from Fennovoima Oy. Damages will be determined in additional proceedings.
The DRB findings made by a panel of renowned international experts express a balanced and objective position in relation to Hanhikivi-1.
The unilateral initiative of the Finnish shareholders to terminate the EPC contract came at a time when the project was demonstrating remarkable progress. In early 2022, Fennovoima Oy representatives publicly announced the licensing work had reached the “homestretch” with the final licensing materials expected to be submitted to the Radiation and Nuclear Safety Authority (STUK) for assessment of the construction license application over the next couple of months. Meanwhile, active preparatory work was under way at the NPP site to ensure readiness for the start of full-scale construction.
ROSATOM intends to defend its interests until its demands are fully satisfied.
Notes to the editors:
The mechanism of referring to the Dispute Review Board (DRB) is provided for in the contract between Fennovoima Oy and RAOS Project Oy. The working procedure of the DRB as an independent expert body is determined by the Rules of the International Chamber of Commerce (ICC Paris).