The court of arbitration approved Finnish retailing company, Kesko's decision to be removed from participation in the Fennovoima nuclear power plant project, on Tuesday.
The Voimaosakeyhtio SF consortium in the Fennovoima nuclear power plant project, known as the Hanhikivi plant, applied to the court of arbitration to ensure that the Kestra Kiinteistopalvelut Oy (Kesko) company, a consortium member, could not pull out from its commitment to finance the project.
However, the court ruled in favor of Kesko and dismissed Voimaosakeyhtio SF's case.
Kesko had a share of 2 percent in Fennovoima and requested to leave the project in 2014.
"On Jan. 10 2017, the court of arbitration made an arbitration award in the case in which Voimaosakeyhtio SF demanded the court of arbitration confirm that Kestra Kiinteistopalvelut Oy's notification to Voimaosakeyhtio SF for participation in the further financing of the Fennovoima project is binding on Kestra Kiinteistopalvelut Oy," Kesko said in a written statement.
The commencement of the arbitration proceedings was announced in a stock exchange release on Dec. 17, 2015, the company said.
A group of Finnish companies founded the Voimaosakeyhtio SF consortium in 2007 and Fennovoima’s nuclear power plant project was also started the same year.
The Finnish government has a requirement to have 60 percent local ownership in the project.
The shares of the project are divided between Finland’s energy company Voimaosakeyhtio SF with a 66 percent share, while RAOS Voima Oy, a subsidiary of Russia's state atomic energy corporation, Rosatom holds the remaining 34 percent.
Finnish energy consortium Fennovoima received the Finnish government's approval to construct the 1,200 megawatt reactor Hanhikivi plant on Dec. 8, 2015.
Fennovoima submitted an application to build the Hanhikivi nuclear power plant, whose components will be supplied by Rosatom, the Finnish Ministry of Employment and the Economy sources revealed at the end of June.
The nuclear power project is currently in its licensing phase and is expected to start construction next year. According to the agreed schedule, electricity production from the power plant will begin in 2024.
Nuclear power is the biggest source of electricity in Finland accounting for around 27 percent of domestic consumption.
Nuclear energy has been produced since the first reactor became operational in 1977. Currently there are four reactors in operation: two in Southern Finland in Loviisa, and two on the west coast in Olkiluoto.
By Huseyin Erdogan and Murat Temizer