Cyprus Mail
EuropeRussiaUkraine

Russia stops Finland gas flow over payments dispute (Updated)

file photo: a view shows gazprom's gas processing facility at bovanenkovo gas field
A gas processing facility, operated by Gazprom company, at Bovanenkovo gas field on the Arctic Yamal peninsula, Russia May 21, 2019. Picture taken May 21, 2019. REUTERS/Maxim Shemetov/File Photo

Russia’s Gazprom GAZP.MM on Saturday halted gas exports to neighbouring Finland, in 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.

The move by Gazprom comes at the same time as Finland is applying to join the NATO military alliance, a decision spurred by Russia’s invasion of UkraineRead full story

“Gas imports through Imatra entry point have been stopped,” Finnish gas system operator Gasgrid Finland said in a statement on Saturday.

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 0400 GMT on Saturday morning. Read full story

Gasum and Gazprom also confirmed on Saturday the flows had stopped. Read full story

“Natural gas supplies to Finland under Gasum’s supply contract have been cut off,” Gasum 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 neighbouring 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% of its annual energy consumption. Read full story

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. Read full story

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 EE.N to help replace Russian supplies, starting in the fourth quarter this year. Read full story

The vessel turns supercooled, liquefied natural gas (LNG), which arrives on ships, back into regular gas.

Related Posts

Russia says it is expelling eight Greek diplomats

Norway police seek delay to Pride events after gay bar shooting

Reuters News Service

Tornado kills one, injures 10 in Netherlands

G7 pledges unwavering support for Ukraine; shopping centre ‘hit by Russian missile’ (Update 3)

Reuters News Service

Russia, rejecting default, tells investors to go to western financial agents

Reuters News Service

G7: we will stand with Ukraine ‘for as long as it takes’