Fennovoima has signed a project development agreement with Rusatom Overseas, a subsidiary of Rosatom, for the Hanhikivi 1 nuclear power plant unit in Northern Finland.

Rusatom will supply a nuclear reactor for the plant under the contract, which is expected to be signed by the end of 2013.

The Russian 1200MW reactor will feature Rusatom Overseas’ pressurized water reactor AES-2006 plant.

Fennovoima said 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.

Apart from the supply of a nuclear reactor, Rusatom Overseas is also negotiating to acquire a 34% stake in Fennovoima.

Finnish power firm Fennovoima said direct negotiations with Rusatom Overseas started in April 2013 and since February this year, talks have been ongoing with Toshiba, but failed to sign a contract.

Fennovoima is owned by 60 firms representing industry, trade, and energy sectors from all around Finland.