Finnish group drops nuclear plant application with Russia's Rosatom

"Fennovoima has withdrawn the Hanhikivi 1 construction license application -- focus is now on preserving the Pyhajoki site," said a statement from the company, in which Rosatom has a 34-percent stake via a subsidiary.

Sakari Kotola, PR Director for Fennovoima, told AFP there were no plans to apply for a new license "at this stage".

Energy group Fennovoima's Hanhikivi 1 plant was meant to be delivered by RAOS Project, a Finnish subsidiary of Rosatom.

But the Russian invasion of Ukraine in February led the Nordic country to re-evaluate the security risks of the Russian nuclear reactor.

Fennovoima terminated the delivery contract with RAOS Project on May 2, citing risks linked to the war in Ukraine.

Chairman of the board Esa Harmala told reporters the contract had been cancelled due to "delays and the inability to deliver" and that "the war has increased these risks".

Rosatom said at the time it was surprised by the announcement, describing the reasons given as "completely incomprehensible".

Fennovoima's management had not discussed the termination of the contract with shareholders, it added.

Rosatom also said it might take the matter to court.