Fennovoima nuclear project in Finland faces dismantling after Russian ties revealed

Founded in 2007, Fennovoima’s initial vision was to construct a nuclear power plant using Western technology to reduce Finland’s energy dependency on Russia. However, the project evolved into a tool of Russian foreign policy, posing long-term cooperation risks for Finland. Recently, construction sites established by Fennovoima and Rosatom in Pyhäjoki have begun to be dismantled.

Sinikukka Saari, a leading researcher at the Finnish Institute of International Affairs, reflects on the project’s prolonged attempts at justification despite evident political risks. Both the Finnish government and the European Commission previously perceived the initiative as merely economic cooperation, even after Russia’s annexation of Crimea and the onset of the war in Eastern Ukraine. It was not until Russia’s full-scale invasion of Ukraine in February 2022 that Finland began to view Russia as a threat, prompting a reevaluation of all cooperation.

Many believed that the most perplexing phase of Fennovoima’s saga revolved around ownership arrangements. Researchers and activists discuss their insights on the developments. The connection between state and commercial actors in Russia complicates matters, as emphasized by Saari, noting that Rosatom is entirely state-owned.

Amidst growing tensions, Fennovoima’s plans faced scrutiny, especially following its dependence on Russian affiliations. The project’s future was quickly put on hold after the invasion, although some political and commercial entities took longer to adjust.

The fate of the Fennovoima nuclear project now appears sealed, having consumed approximately €1.4 billion so far. Work at the Hanhikivi site has halted, the company has been shut down, and dismantling has commenced. The next chapter will unfold in arbitration courts as Fennovoima and Rosatom address their respective billion-euro compensation claims.