Rusatom Overseas, a division of Russian state nuclear corporation Rosatom, signed a contract with Finland's Fennovoima for the construction of the Hanhikivi 1 nuclear power plant, Rosatom said.
Fennovoima, the company that has commissioned the construction of the NPP, and TVEL, Rosatom's nuclear fuel division, also signed a fuel agreement for the future NPP.
However, a contract on Rusatom Overseas acquiring a 34 percent stake in Fennovoima was not signed. Rosatom said that Voimaosakeyhtio SF, which represents more than 60 Fennovoima shareholders from various regions of Finland, and Rusatom Overseas signed an agreement setting out the conditions of responsibilities and stakes in the project. The document calls for Rusatom Overseas to take a 34 percent equity stake in Fennovoima.
As a result of the contract, Rosatom divisions will build 20 NPP generating units abroad, and the group's portfolio of contracts to build NPP, supply fuel, enriched uranium products and other services will top $74 billion.
Fennovoima and Rusatom Overseas entered into an agreement in July to prepare a contract on the construction of the Hanhikivi 1 plant for signing. The companies said in early September that Fennovoima shareholders are supposed to make a decision on participation in the project by the end of October.
The parties agreed on the terms of the contract they planned to sign by the end of 2013. As a result of the negotiations, Fennovoima is proposing to its shareholders a plan that, according to a schedule agreed with Rosatom, would see the plant start generating electricity in 2024.
The main goal was to sign a contract by the end of the year to build the Hanhikivi 1 plant. Negotiations were also held on Rusatom Overseas acquiring a 34 percent stake in Fennovoima. It was reported earlier that Germany's E.ON had sold its 34 percent stake in Fennovoima to Voimaosakeyhtio SF.
Fennovoima and Rusatom Overseas began direct negotiations in April. Fennovoima had also held negotiations with Toshiba since February, but later decided to focus on talks only with Rusatom Overseas. France's Areva had also proposed its design.
Rosatom is proposing the AES-2006 design with a VVER pressurized water reactor with capacity of 1,150 MW.
Finland already operates two Soviet-design VVER reactors with capacity of 440 MW each at the Loviisa NPP.
Fennovoima owns more than 60 industrial, trade and power companies in Finland. The company was set up to build new nuclear plants in Finland, but does not currently have any such plants.
Rusatom Overseas is the division of Rosatom that promotes Russian nuclear technologies on foreign markets.
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