Danish wind turbine manufacturer Vestas and Scandinavian energy company Fortum have announced a settlement in their arbitration over wind energy projects in Russia.
The agreement ends disputes over business activities in the region, with both parties abandoning past, present and future claims.
The terms of the settlement were kept confidential by both companies.
In 2022 Fortum arbitration commenced at the International Chamber of Commerce in Stockholm.
Fortum’s claims against Vestas related to agreements on wind energy projects in Russia signed before Russia’s invasion of Ukraine in February 2022.
It claimed to have made payments to Vestas for Russian projects that were subsequently cancelled, while Vestas claimed this was necessary to comply with Russian sanctions.
Vestas added that Fortum was seeking more than $218 million (200 million euros) in compensation for contracts lost due to sanctions that prevented the delivery, installation and maintenance of new turbines at four wind power plants operated by Fortum’s Russian subsidiary WEDF.
Vestas President and CEO Henrik Andersen said: “The disagreements between Vestas and Fortum were both significant and unusually public, but over time it became clear that it is in the best interests of both parties to resolve the dispute.
“We look forward to keeping existing wind farms running and exploring new ones together with Fortum for the benefit of Fortum, Vestas and the European energy system.”
Now that this settlement has been reached, the two companies have reached a compromise that will allow them to once again collaborate on both new energy projects and existing wind farms.
Fortum President and CEO Markus Rauramo said: “I am pleased that we have reached an agreement that satisfies both parties and allows us to now move forward and look to the future prospects.”
“Vestas and Fortum Resolve Arbitration Dispute Over Russian Wind Projects” was originally created and published by Power technologya brand owned by GlobalData.
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