Finland-based nuclear firm Fennovoima has terminated a construction contract that was being delivered by Russia-based Rosatom.
Fennovoima has scrapped the engineering, procurement, and construction contract for the delivery of the Hanhikivi 1 nuclear power plant with Rosatom subsidiary RAOS Project, citing “significant delays” and an “inability to deliver the project”.
There have been significant and growing delays during the last years, it said, adding that the war in Ukraine has made the project more risky.
Fennovoima says cooperation with RAOS Project has been terminated with immediate effect.
Fennovoima CEO Joachim Specht said: “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.
“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.”
Board chair Esa Härmälä added: “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.”
Image: petroleum man/Shutterstock
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