Russia completely cuts off gas to Finland

Russia has stopped delivering natural gas to Finland after energy company Gasum failed to make a mandatory payment in rubles, Finnish gas system operator Gasgrid said on May 21.

“The import of gas through the Imatra border gate has been stopped,” the notice read.

Russian energy group Gazprom also confirmed the cessation of gas supplies to Finland.

“Gazprom has completely stopped supplying gas to Gasum (Finland) due to non-payment in rubles. As of the end of the working day on May 20, Gazprom Export has not yet received payment for gas supplies in April from Gasum (Finland) under the new payment mechanism based on rubles. let me know.

Gasum also confirmed on May 21 that deliveries have stopped.

Earlier this week, Gasum said it does not accept payments for Russian gas in rubles, claiming to Gazprom to arbitration.

Finland imports most of its natural gas from Russia, but accounts for only about 5% of its annual energy consumption. However, that loss of supply could have a negative impact on companies in the energy and forestry sectors, as well as in the chemical and food industries.

Almost 30% of primary energy in Finland comes from fuels made from wood, while 22.5% is from oil and 19% from nuclear power, according to media reports, citing figures. official.

In 2020, Russia supplied about 1.61 billion cubic meters of natural gas to Finland and last year it was 1.8 billion cubic meters. In addition, Finland has two liquefied natural gas terminals in Pori and Tornio, with a total capacity of 0.65 billion cubic meters per year.

To completely replace Russia’s gas supplies, analysts say, Finland will have to make full use of its existing energy infrastructure as the Nordic country does not have its own underground gas storage. .

Gasum said it was prepared for the shutdown of Russian supplies. Finland hopes to receive gas from Estonia via the BalticConnector gas pipeline during the summer, although Tallinn also rejected a new Russian payment mechanism last month and possible capacity constraints on the pipeline. complicate this goal.

Media reports also say that both Estonia and Finland intend to lease a floating dock to receive liquefied natural gas (LNG) next fall.

Earlier, the Finnish newspaper Helsingin Sanomat on April 30 reported that Gazprom set a deadline of May 20 for the Finnish authorities to give a final response on whether the country will pay for gas by means of payment. ruble or not.

A new payment mechanism for “unfriendly countries” was announced by Russian President Vladimir Putin in March in response to Western countries’ sanctions against Russia over a military attack on Ukraine.