Outokumpu Clears Arbitration Hurdle in Fennovoima Dispute
Outokumpu Corporation, a leading global producer of sustainable stainless steel, has emerged victorious in a significant legal matter regarding its involvement in a dispute between Fennovoima Oy and Rosatom entities. On February 14, 2025, the International Court of Arbitration, under the International Chamber of Commerce, confirmed that Outokumpu is not liable in the ongoing arbitration proceedings involving RAOS Project Oy and JSC Rusatom Energy International.
The dispute dates back to 2023, when RAOS Project Oy, a subsidiary of Rosatom, sought to join Outokumpu into existing arbitration proceedings. These proceedings were related to the termination of the Engineering, Procurement, and Construction (EPC) contract between Fennovoima and RAOS Project, which occurred in May 2022. Outokumpu, a minority shareholder in Voimaosakeyhtiö SF, the majority shareholder of Fennovoima Oy, had been implicated in the arbitration process despite its lack of direct contractual obligations or relationship with RAOS Project or its parent, Rosatom.
The Legal Conflict and Outokumpu’s Position
In January 2023, RAOS Project Oy filed a request with the International Court of Arbitration to join Outokumpu into the ongoing dispute. The request was grounded in the belief that Outokumpu, as a shareholder in Voimaosakeyhtiö SF (which holds 97% of Fennovoima Oy’s shares), may hold some responsibility due to the termination of the EPC contract. However, Outokumpu strongly contested this claim, arguing that it had no contractual relationship, obligation, or arbitration agreement with any of the involved Rosatom entities.
Outokumpu consistently maintained that its stake in Voimaosakeyhtiö SF was negligible, with the company valuing its 23% share in the holding company at zero since 2021. The company also emphasized that its involvement in Fennovoima was strictly as a minority shareholder and that it had no direct role in the disputed contract. In light of these facts, Outokumpu denied the existence of any liability that could be attributed to it concerning the dispute.
The Arbitral Tribunal’s Ruling
On February 14, 2025, the Arbitral Tribunal concluded its proceedings by confirming Outokumpu's position, ruling that it did not have jurisdiction to adjudicate the claims brought by RAOS Project Oy and JSC REIN. This ruling effectively ends the arbitration process as it pertains to Outokumpu, clearing the company of any responsibility or legal entanglement in the dispute.
This outcome is a significant legal victory for Outokumpu, as it removes the company from a lengthy and complex arbitration process and ensures that it will not be held liable for issues unrelated to its core operations or contractual obligations.
Outokumpu’s Role in Fennovoima and Its Investments
Although Outokumpu has been involved in the Fennovoima project, its role has been purely as a minority shareholder. Outokumpu owns 23% of the shares in Voimaosakeyhtiö SF, which in turn holds a 97% stake in Fennovoima Oy. The company has valued its shares in Voimaosakeyhtiö SF at zero since 2021, which reflects the uncertain nature of the project and the challenges it has faced in recent years. Despite this, Outokumpu has remained engaged in ensuring that its involvement does not lead to any unforeseen liabilities.
Fennovoima’s ongoing nuclear power project has faced significant hurdles, including legal disputes and financing challenges, which contributed to the termination of the EPC contract with RAOS Project. However, Outokumpu has distanced itself from the direct issues surrounding the contract and focused on its core business areas of sustainable steel production.
Implications of the Arbitration Decision
The tribunal’s decision marks a clear separation between Outokumpu and the disputes related to Fennovoima and Rosatom entities. The ruling provides clarity for Outokumpu’s future operations, allowing the company to continue focusing on its primary activities without being drawn further into the complex legal situation surrounding the nuclear project.
With the arbitration proceedings now concluded, Outokumpu can concentrate on its sustainability goals and strategic initiatives, particularly its efforts to decarbonize its operations and secure reliable sources of raw materials. The decision also clears the company from any potential financial or legal obligations related to the Fennovoima project, providing the company with greater operational freedom moving forward.
Key Takeaways:
• Outokumpu has been cleared from arbitration proceedings regarding a dispute between Fennovoima Oy and Rosatom entities.
• The International Court of Arbitration ruled that Outokumpu is not liable for claims made by RAOS Project Oy and JSC REIN.
• Outokumpu holds a 23% stake in Voimaosakeyhtiö SF, which owns 97% of Fennovoima Oy, but has valued this investment at zero since 2021.
• RAOS Project sought to join Outokumpu in the arbitration process related to the termination of the EPC contract between Fennovoima and RAOS.
• Outokumpu successfully contested the claims, arguing that it had no contractual relationship, obligation, or arbitration agreement with any of the Rosatom entities involved.
• The tribunal’s decision marks the end of the arbitration process for Outokumpu, removing the company from any further liability in the matter.
• The ruling allows Outokumpu to continue focusing on its core operations in sustainable stainless steel production and raw material sourcing.
