OREANDA-NEWS. July 08, 2013. Finnish Fennovoima and Rusatom Overseas, a subsidiary of ROSATOM, have signed a Project Development Agreement aiming at a nuclear power plant supply contract. In the development agreement the companies have set common targets according to which negotiations during the rest of the year 2013 will be carried out.

The contract for supplying Fennovoima's Hanhikivi 1 nuclear power plant unit in Finland is to be signed by the end of 2013. In addition, negotiations on Rusatom Overseas acquiring 34 % share in the capital of Fennovoima are being carried out.

The Russian 1200 MW reactor is in accordance with the needs of Fennovoima's owners. In addition, Rusatom Overseas’ execution model and the offer as a whole are suitable for Fennovoima's project.

ROSATOM pressurized water reactor AES-2006 plant is the latest evolution in a long line of VVER plant designs. The plant corresponds with IAEA and EUR requirements, and for licensing purposes it will be adapted to be in accordance with Finnish national safety standards. In Finland, two VVER-440 plant units have been used safely in Loviisa for decades. Currently there are orders to construct AES-2006 abroad and in addition the company is building AES-2006 units in Russia.

Direct negotiations with Rusatom Overseas begun in April 2013. Since February 2013, negotiations have been ongoing with Toshiba as well but from now on Fennovoima concentrates on negotiating only with Rusatom Overseas.

Fennovoima is owned by 60 companies representing industry, trade, and energy sectors from all around Finland. Before the plant supply contract is signed, all of Fennovoima's owners decide on their continuation in the project.

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Fennovoima is owned by a large group of Finnish companies in need of their own electricity supply. Fennovoima is a Mankala company, a form of cooperative producing electricity for its owners’ needs at production cost in proportion to their ownership share