Fortum had sought more than $218m (€200m) in compensation. Credit: Leon_Brouwer/Shutterstock.

Danish wind turbine maker Vestas and Nordic energy company Fortum have announced a settlement in their arbitration concerning wind energy projects in Russia.

The agreement ends the disputes over business activities in the region, with both sides giving up past, present and future claims.

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The terms of the settlement were kept confidential by both companies.

In 2022, Fortum commenced arbitration at the International Chamber of Commerce in Stockholm.

Fortum’s claims against Vestas pertained to agreements concerning wind energy projects in Russia that were signed before the Russian invasion of Ukraine in February 2022.

It stated that it had made payments to Vestas for Russian projects that were subsequently cancelled, while Vestas claimed this was necessary to adhere to Russian sanctions.

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Vestas added that Fortum sought more than $218m (€200m) in compensation for contracts lost due to sanctions that prevented the delivery, installation and servicing of new turbines at four wind power plants operated by Fortum’s Russian subsidiary, WEDF.

Vestas president and CEO Henrik Andersen stated: “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.”

With this settlement achieved, the two companies have come to a compromise that enables them to collaborate once more on new energy projects as well as on existing wind parks.

Fortum president and CEO Markus Rauramo stated: “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.”