Finland's defunct Hanhikivi nuclear power plant project faces a major corruption scandal as police complete a five-year investigation into serious financial crimes. The Oulu Police Department suspects a construction company that worked on the Pyhäjoki site of aggravated tax fraud, aggravated accounting offenses, and aggravated bribery in business operations. The case, developed in close cooperation with the Finnish Tax Administration, has now been forwarded to prosecutors for consideration of charges against three individuals.
Suspected Scheme Involving Offshore Accounts
Police allege the company improperly deducted value-added taxes on expenses it was not entitled to claim. Investigators also suspect bribery was involved in securing subcontracts on the massive Hanhikivi 1 construction site. "Based on the pre-trial investigation, it is suspected that payment was a prerequisite for the company to receive contracts from the Hanhikivi worksite," police stated. They noted the suspected bribes were paid to companies operating abroad, indicating a cross-border element to the scheme.
When the nuclear project was abruptly terminated in 2022 following Russia's invasion of Ukraine, the company wrote off approximately €3.5 million in receivables. The main contractor then paid the suspected company's receivables to a Polish account belonging to the firm. From this off-the-books account, authorities successfully seized about €400,000. An additional €50,000 in company assets was confiscated.
Individuals Face Multiple Charges
The primary suspect is an Estonian person in charge of the construction company. This individual is suspected of evading approximately €400,000 in taxes personally, as part of the wider scheme where the company allegedly avoided a total of €1 million in taxes. Two other foreign nationals—one Estonian and one Lithuanian—are also under suspicion. They are being investigated for aiding and abetting aggravated tax fraud, with one also suspected of aggravated accounting offenses and the other of aggravated bribery in business operations.
All three individuals, whose cases are proceeding to the prosecutor, deny any wrongdoing. During the lengthy investigation from 2020 to 2025, a total of six people were initially under suspicion. The pre-trial investigation has concluded for three of them.
Project's Troubled History and Demise
The Hanhikivi 1 project was a source of national controversy long before these criminal allegations surfaced. A joint venture between Finnish consortium Fennovoima and Russian state nuclear giant Rosatom, it was planned for the municipality of Pyhäjoki on Finland's west coast. The project faced persistent delays, escalating cost estimates, and intense political debate over energy security and dependence on Russian technology.
Its fate was sealed in May 2022, when Fennovoima terminated the engineering, procurement, and construction contract with RAOS Project Oy, a Rosatom subsidiary. The decision came directly in response to Russia's war in Ukraine and the ensuing European sanctions. The cancellation left a partially prepared site and a complex web of international contracts, now under the scrutiny of financial crime units.
Expert Analysis: A Case Study in Project Risk
"This investigation highlights the multifaceted financial and governance risks embedded in mega-projects, especially those with international partners from diverse regulatory landscapes," says Dr. Elina Saarinen, a professor of public governance at the University of Helsinki. "The scale and complexity can create opaque layers of subcontracting where due diligence becomes challenging, and opportunities for financial crime can emerge."
Dr. Saarinen notes that the case underscores the critical importance of robust, continuous oversight not just from the primary contractor, but also from national authorities. "When a project involves state-level strategic interests, like energy infrastructure, the oversight mechanism must be proportionate to the risk. The alleged movement of funds through offshore accounts suggests exploitation of jurisdictional gaps."
Other experts point to the timing of the alleged crimes, spanning the peak construction planning phase from 2020 onward. "The allegations, if proven, indicate systemic issues rather than isolated incidents," comments Marko Juntunen, a lawyer specializing in corporate compliance. "Aggravated bribery in business operations suggests a calculated attempt to influence contract awards. This case will be a test for Finland's ability to prosecute complex, cross-border economic crime."
The Broader Context for Finnish Energy Policy
The scandal emerges as Finland recalibrates its energy policy in the post-Hanhikivi era. With the project dead, Finland has turned to other sources to ensure energy independence and meet carbon neutrality goals. The existing Olkiluoto 3 reactor, Europe's most powerful, has entered regular production, and there is renewed political discussion about possible new nuclear investments with Western partners.
This police investigation serves as an unwelcome postscript to a chapter many in Finnish politics and industry would prefer to close. It raises uncomfortable questions about the oversight and financial controls that were in place during the project's active phase. Members of Parliament's Commerce Committee have previously called for audits of major public-facing projects to prevent similar situations.
Legal Proceedings and Next Steps
The case file is now with the prosecutor, who will decide whether to bring formal charges. Prosecuting aggravated financial crimes requires a high burden of proof, particularly for the bribery allegations which involve demonstrating a quid pro quo arrangement. The international dimension, with suspects and transactions spanning Estonia, Lithuania, and Poland, adds further complexity and may require judicial cooperation.
The suspected €1 million tax fraud represents a direct loss to the Finnish state. The seized assets, totaling €450,000, may eventually be forfeited if convictions are secured. For the local Pyhäjoki region, which pinned significant economic hopes on the nuclear project, the news is another blow, transforming the promised energy hub into a symbol of scandal.
What lasting impact will this probe have on Finland's approach to financing and monitoring critical national infrastructure projects? The answer will shape not only this prosecution but also the safeguards for future investments in the country's energy future.