Rosatom Prompts Extra Political Due Diligence in Finland
The Finnish government reportedly delayed a decision to move forward with a project to build the Hanhikivi‑1 nuclear power plant due to political and other concerns related to Rosatom having been selected as the project’s lead contractor after the original license was approved by parliament. The government is reportedly interested in securing another approval from parliament that takes into consideration not only the selection of Rosatom as the lead contractor, but also the recent downturn in relations with Russia over the Ukraine crisis. Approval is expected and the delay would merely push the project’s progress back approximately one month. This extra piece of political and project due diligence is significant due to the market signals it sends regarding the impact of Russia’s recent actions on companies that are not sanctioned, but clearly represent leading strategic assets and appendages of Vladimir Putin‘s government. The Hanhikivi‑1 project has an estimated cost of up to $7.2 billion, a target capacity of 1,200 MW and a construction timeframe stretching from 2015 to 2024.