Finnish energy company Fortum and Danish wind turbine company Vestas have settled a dispute over advance payments made for Russian wind projects that were terminated due to sanctions resulting from its invasion of Ukraine.
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Fortum began arbitration proceedings against Vestas in April last year over “sizeable advance payments” for more than 50 wind turbines it had made to the company for Russian wind projects.
The companies signed contracts before Russia’s invasion of Ukraine in 2022. The settlement entails that both companies waive past, present and future claims related to their legacy business activities in Russia.
With this settlement, Fortum and Vestas have reached a compromise that allows the companies to work together again on new energy projects as well as already operating wind parks.
Fortum president and CEO Markus Rauramo said, “I am pleased that we have reached an agreement that pleases both parties and which enables us to now move on and look at future prospects going forward.”
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Vestas president and CEO Henrik Andersen said, “Vestas and Fortum’s differences have been both significant and uncharacteristically public, but over time it became clear it’s in both parties’ interest to settle the dispute. We look forward to keeping existing wind parks running and exploring new ones with Fortum for the benefit of Fortum, Vestas and Europe’s energy system.”
