Rosatom subsidiary will proceed with Finnish nuclear project

By Anne Kauranen

HELSINKI, April 11 (Reuters) - Russia's state-owned nuclear power supplier Rosatom and its Finnish unit RAOS Project will proceed with a planned nuclear plant in Finland, RAOS said on Monday, despite uncertainty over government permits since Russia's invasion of Ukraine.

"Rosatom and RAOS Project continue fulfilling their obligations under signed agreements and contracts relating to the Hanhikivi 1 project," RAOS Project told Reuters in an email.

Since Russia began what it calls a "special operation" in Ukraine, Finland's minister of economic affairs Mika Lintila has repeatedly said it would be "absolutely impossible" for the government to grant a construction permit for the Hanhikivi plant.

The plant was commissioned by a Finnish-Russian consortium dubbed Fennovoima, in which Finnish stakeholders such as Outokumpu OUT1V.HE , Fortum FORTUM.HE and SSAB SSABa.ST own two thirds and Rosatom's subsidiary RAOS Voima holds the rest.

Many of the Finnish stakeholders have publicly expressed their will to pull out and write down the project, but are unwilling to pay RAOS Project for breach of existing contracts and possible indemnities.

Meanwhile, RAOS Project has continued preparatory construction work, such as cabling and excavation in the planned plant's site on the northwest coast of Finland, but cannot embark on building the facility without a government licence.

"RAOS Project Ltd as the ... supplier is acting based on and in accordance with the engineering, procurement and construction contract signed in December 2013 with Fennovoima," it wrote.

Fennovoima had expected to obtain a construction licence from the government by summer 2022 to build the 1.2 gigawatt (GW) reactor, while construction was expected to begin in 2023.

Finland's government was not immediately available for comment.
Reporting by Anne Kauranen; Editing by David Goodman and David Holmes

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.