Peace breaks out between Vestas and Fortum after 'uncharacteristically public' Russia row
OEM and developer settle dispute over undelivered wind turbines that descended into claim and counter-claim over undermining sanctions
Vestas has settled a dispute over Russian wind farms with Fortum that at one stage escalated into a full-scale public row between the turbine OEM and the Finnish energy group.
The two companies have reached an agreement that will see both “waive past, present and future claims related to their legacy business activities in Russia”, said a statement from Vestas.
The dispute erupted in 2023 after Fortum launched arbitration proceedings against Vestas claiming more than €200m ($218m) for unfulfilled turbine deals relating to wind farms planned by the former’s Russian subsidiary WEDF, before Russia’s invasion of Ukraine turned the nation into a pariah as far as western firms were concerned.
Fortum was before the Ukraine invasion the largest player in Russia’s nascent wind power sector with Vestas a key supplier.
“Questioning whether sanctions apply can only benefit the interests of Russia and its sympathisers,” Vestas CEO Henrik Andersen said in 2023. State-owned Fortum itself responded with fury that its commitment to sanctions was under question.
By contrast, Andersen said of this week’s settlement: “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.”
Fortum CEO Markus Rauramo was equally emollient, saying: “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.”
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