A Finnish nuclear energy company said Monday it has decided to terminate with immediate effect a contract with Russian state nuclear energy corporation Rosatom for the delivery of a nuclear power plant, in part due to the war in Ukraine ``which has worsened the risks for the project.''

It was proposed to house a Russian-designed pressurized water reactor, with a capacity of 1200 MW and the nuclear power plant was to generate approximately 10% of Finland's electricity needs, the company said.

In April 2021, the company announced that construction was to begin in 2023 and commercial operation would start in 2029.

In a statement, Fennovoimas's CEO Joachim Specht said the decision ``is estimated to have a significant employee impact in Fennovoima and is expected to impact also the supply chain companies.''