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15 Dec 2022, 13:49

Dispute Review Board considers Hanhikivi 1 NPP contract termination wrongful — Rosatom

The unilateral decision of Finnish shareholders on contract severance was made at the time when the project was in progress

MOSCOW, November 15. /TASS/. The Dispute Review Board recognized termination of the contract for the Hanhikivi 1 nuclear power plant (NPP) construction as wrongful, the Russian state nuclear corporation Rosatom said on Thursday.

"The Dispute Review Board (DRB) issued a verdict, whereby the unilateral termination of the contract for the Hanhikivi 1 NPP construction by Finnish Fennovoima was recognized as wrongful," Rosatom said. DRB also recognized as unlawful the refusal of Fennovoima to accept work performed by RAOS Project [a Rosatom’s company - TASS] as the supplier under the contract. The Board established that the unlawful termination of contract is the material breach of contract terms, conferring the right to RAOS Project to demand collection of inflicted damages from Fennovoima. Further proceedings will determine the amount of damages.

The unilateral decision of Finnish shareholders on contract severance was made at the time when the project was in progress, Rosatom noted. The mechanism of approaching the Dispute Review Board was stipulated by the contract between Fennovoima and RAOS Project.