In the latest escalation of an energy payments dispute with Western nations, Russia’s Gazprom halted gas deliveries to Finland on Saturday.
Because of sanctions imposed over Moscow’s invasion of Ukraine, Gazprom Export has asked that European countries pay for Russian gas supplies in roubles, but Finland has refused.
Gazprom’s move coincides with Finland’s application to join the NATO military alliance, which was prompted by Russia’s invasion of Ukraine.
“Gas imports through the Imatra entry point have been halted,” stated Gasgrid Finland, the operator of the Finnish gas grid.
Imatra is Finland’s entry point for Russian gas.
Gazprom had warned that flows would be halted at 0400 GMT on Saturday morning, according to Gasum, a state-owned gas wholesaler in Finland.
On Saturday, both Gasum and Gazprom confirmed that the flows had ceased.
Gasum said that “natural gas supplies to Finland under Gasum’s supply contract have been turned off.”
“Beginning today, Gasum will distribute natural gas to its customers from other sources via the Balticconnector pipeline during the forthcoming summer season.”
The Balticconnector connects Finland to Estonia’s gas grid.
Gasum had not complied with the new Russian legislation demanding settlement in roubles, according to Gazprom Export on Friday.
Although Russia supplies the majority of Finland’s gas, it only accounts for roughly 5% of the country’s yearly energy consumption.
The majority of European supply contracts are in euros or dollars, and Moscow turned off gas to Bulgaria and Poland last month when they refused to meet the new payment terms
Gasum, the Finnish government, and individual gas-consuming enterprises in Finland have stated that they are prepared for a Russian gas supply disruption and that the country will be OK.
“Both physically and commercially, the Finnish gas infrastructure is balanced,” Gasgrid said on Saturday.
Finland announced on Friday that it has agreed to charter a storage and regasification vessel from Excelerate Energy of the United States assist replace Russian supplies beginning in the fourth quarter of this year.
The vessel converts supercooled liquefied natural gas (LNG) delivered by ships into normal gas.
