Sun, 26 Jun 2022

Russia halts gas supplies to Finland

RT.com
21 May 2022, 15:18 GMT+10

The move comes after the state energy major failed to comply with Moscow's ruble payment demand

Russia has halted natural gas deliveries to Finland after state energy major Gasum failed to make the required payment in rubles to continue future supplies, the Finnish gas system operator Gasgrid Finland said on Saturday. 

"Gas imports through Imatra entry point have been stopped," the statement read.

Earlier this week, Gasum announced that it will not comply with Russia's new ruble-based gas payment scheme.

Finland imports the vast majority of its natural gas from Russia; however, this type of fuel accounts for only about 5% of the country's energy use.

Nearly 30% of primary energy in Finland comes from firewood, while 22.5% is from oil, and 19% from nuclear energy, media reports, citing official figures.

In 2020, Russia supplied around 1.61 billion cubic meters of natural gas to Finland, and last year, the figure stood at 1.8 billion cubic meters. Also, two small LNG terminals operate in the country with a total capacity of 0.65 billion cubic meters per year, Tornio Manga and Pori.

In order to completely replace this seemingly small supply of Russian gas, however, Finland will have to fully use its existing energy infrastructure, analysts say, as Finland does not have its own underground gas storage facilities.

According to Gasum, the company has prepared for a scenario in which Russian supplies stop. Finland hopes to receive gas from Estonia via the Balticconnector gas pipeline this summer. The Baltic country also rejected Russia's new payment mechanism last month. However, capacity limitations on the pipeline may complicate the task.

Media reports also say that both Estonia and Finland intend to rent a floating terminal for receiving liquefied natural gas (LNG) by next fall.

For more stories on economy & finance visit RT's business section

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