Russia Halts Finland Gas Supply Over Payments Dispute

Russia's Gazprom has demanded that European countries pay for Russian gas supplies in roubles because of sanctions imposed over Moscow's invasion of Ukraine, but Finland refuses to do so

Reuters
Reuters
A photo taken on May 12, 2022 shows pipes at the Gasum plant in Raikkola, Imatra, Finland.
A photo taken on May 12, 2022 shows pipes at the Gasum plant in Raikkola, Imatra, Finland.Credit: VESA MOILANEN - AFP
Reuters
Reuters

Russia's Gazprom on Saturday halted gas exports to neighboring Finland, the Finnish gas system operator said, the latest escalation of an energy payments dispute with Western nations.

Gazprom Export has demanded that European countries pay for Russian gas supplies in roubles because of sanctions imposed over Moscow's invasion of Ukraine, but Finland refuses to do so.

"Gas imports through Imatra entry point have been stopped," Gasgrid Finland said in a statement.

LISTEN: 'Putin's own paranoia will bring NATO to his doorstep'

Imatra is the entry point for Russian gas into Finland.

Finnish state-owned gas wholesaler Gasum on Friday said Gazprom had warned that flows would be halted from 4 A.M. on Saturday morning.

Gasum also confirmed on Saturday that the flows had stopped.

"Natural gas supplies to Finland under Gasum's supply contract have been cut off," it said in a statement.

"Starting from today, during the upcoming summer season, Gasum will supply natural gas to its customers from other sources through the Balticconnector pipeline."

Balticconnector links Finland to neighboring Estonia's gas grid.

Gazprom Export on Friday said flows would be cut because Gasum had not complied with the new Russian rules requiring settlement in roubles.

The majority of gas used in Finland comes from Russia but gas only accounts for about 5 percent of its annual energy consumption.

Most European supply contracts are denominated in euros or dollars and Moscow already cut off gas to Bulgaria and Poland last month after they refused to comply with the new payment terms.

Gasum, the Finnish government and individual gas consuming companies in Finland have said they were prepared for a shutdown of Russian flows and that the country will manage without.

"The Finnish gas system is in balance both physically and commercially," Gasgrid said on Saturday.

Finland on Friday said it had agreed to charter a storage and regasification vessel from U.S. based Excelerate Energy to help replace Russian supplies, starting in the fourth quarter this year.

The vessel turns super-cooled, liquefied natural gas, which arrives on ships, back into regular gas.

Click the alert icon to follow topics:

Comments

SUBSCRIBERS JOIN THE CONVERSATION FASTER

Automatic approval of subscriber comments.

Subscribe today and save 40%

Already signed up? LOG IN

ICYMI

Dr. Claris Harbon in the neighborhood where she grew up in Ashdod.

A Women's Rights Lawyer Felt She Didn't Belong in Israel. So She Moved to Morocco

Mohammed 'Moha' Alshawamreh.

'It Was Real Shock to Move From a Little Muslim Village, to a Big Open World'

From the cover of 'Shmutz.'

'There Are Similarities Between the Hasidic Community and Pornography’

A scene from Netflix's "RRR."

‘RRR’: If Cocaine Were a Movie, It Would Look Like This

Prime Minister Yair Lapid.

Yair Lapid's Journey: From Late-night Host to Israel's Prime Minister

Lake Kinneret. The high water level created lagoons at the northern end of the lake.

Lake Kinneret as You’ve Never Experienced It Before