FINLAND Trends and Developments Contributed by: Tuuli Timonen, Annika Lampela and Tony Chokairy, Dottir Attorneys
Dottir Attorneys Pohjoisesplanadi 35 Aa 00100 Helsinki Finland Tel: +358 50 354 4141 Email: hello@dottirlaw.com Web: www.dottirlaw.com
The past few years have seen both geopolitical fluc- tuation and strife, as well as significant technological advancement. These global trends influence dispute resolution worldwide, and Finland is no exception. This overview examines the key trends of the Finnish dispute resolution landscape in the past few years, with a particular focus on the themes of dispute trends related to geopolitical fluctuations, new technologies, as well as the energy sector. Finally, this overview will address recent and upcoming regulatory changes in The current geopolitical climate and heightened uncertainty are visible in the disputes landscape glob- ally, and Finland is no exception. For one thing, the sanctions imposed by the European Union against Russia have, since their initial introduction, resulted in a wave of sanctions-related disputes that shows no sign of subsiding anytime soon. Sanctions dis- rupt supply chains and payments (eg, by rendering performance of contractual obligations more oner- ous or even illegal), leading to questions surround- ing force majeure, hardship, and the introduction of international law-related issues into commercial relationships. Disputes, and particularly arbitrations, related to investments with Russian connections have increased, as have enforcement and interim measures sought in connection with such disputes before Finn- ish courts. the fields of arbitration and civil litigation. The Effects of Geopolitical Uncertainty Greater geopolitical instability has had broader con- sequences for disputes in Finland as well. Global market volatility resulting from conflicts and the trade policy decisions of large economies have resulted in disruptions at various stages of supply chains and in
different types of projects. This has led, for example, to an uptick in logistics disputes, particularly relating to force majeure and hardship clauses. Supply chain uncertainty also results in disputes arising out of renegotiation or even termination of long-term supply contracts, as commercial actors re-evaluate their risk allocation. Challenges in the supply chain then trans- late into delays and availability issues in infrastructure and other projects that rely on the impacted supply. Fluctuations and disruptions in markets and supply chains have also been reflected in post-M&A disputes in Finland. Volatile market conditions complicate com- pany valuations and projections, increasing the risk of disagreements concerning purchase price and earn- out mechanisms. In particular, earn-out mechanisms have become increasingly common due in part to uncertain market conditions. Correspondingly, dis- putes related to such mechanisms have become com- mon across the Nordics, including Finland. The geopolitical climate has also given rise to a grow- ing sensitivity regarding a variety of legal risks asso- ciated with cross-border transactions. Finnish com- mercial and public actors have become increasingly aware of, and attentive to, for example, sanctions and export control compliance and the reputational risk associated with non-compliance, shifting how and with whom Finnish parties contract. This heightened awareness is also evident in a pronounced focus on internal compliance and a rise in internal investiga- tions. Geopolitical uncertainty has also resulted in an increase in defence spending in Europe and a push for greater defence autonomy, including in Finland.
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