On Monday, Finnish nuclear energy company, Fennovoima announced that it has terminated the construction contract for building the Hanhikivi 1 nuclear power plant (NPP) in tandem with Russia's state nuclear company, Rosatom, in Pyhajoki, Finland.

"Fennovoima has terminated the contract for the delivery of the Hanhikivi 1 nuclear power plant with Rosatom," the Company said in a statement, adding that cooperation is ended "with immediate effect and both the design and licensing work and works at the Hanhikivi 1 site with RAOS project end."

Fennovoima, in addition, has made the decision to do so "due to RAOS Project's [legal entity of Rosatom in Finland] significant delays and inability to deliver the project."

"The war in Ukraine has worsened the risks for the project. RAOS has been unable to mitigate any of the risks," the statement added.

Russia has been dealing with sanctions led by the West, prompting companies around the world to cut their business and trade with Moscow. 

See more: The monthly losses of companies that suspended business in Russia

As Finland looks to abandon its neutrality and join NATO, the Scandinavian country looks to distance itself from Russia, raising hostilities and tensions. 

In the coming weeks, tens of thousands of troops from NATO and other North Atlantic states will participate in a series of military drills throughout Europe as Western governments attempt to display a show of force against Russia.

The drills will take place in Finland, Poland, North Macedonia, and along the Estonian-Latvian border, and will be supported by planes, tanks, artillery, and armored assault vehicles.

In addition, the deployments are scheduled for this week in Finland, where US, UK, Estonian, and Latvian troops will take part in Exercise Arrow in an attempt to work close to Finnish forces.