Daily Management Review

Gas Flows To Finland Halted By Russia Due To Payments Dispute


Gas Flows To Finland Halted By Russia Due To Payments Dispute
Russian gas deliveries to Finland were blocked on Saturday, according to the Finnish gas system operator. This is the latest escalation between Russia and the West over energy payments. The gas was being supplied by Russia's Gazprom. 
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.
"Gas imports through Imatra entry point have been stopped," Gasgrid Finland said in a statement.
Imatra is Finland's entry point for Russian gas.
Gazprom had warned that flows will be halted at 0400 GMT on Saturday morning, according to Gasum, a state-owned gas wholesaler in Finland. continue reading
On Saturday, Gasum announced that the floods had ceased.
"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."
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, gas 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.
"The Finnish gas system is in balance both physically and commercially," Gasgrid said on Saturday.
Finland announced on Friday that it has agreed to charter a storage and regasification vessel from Excelerate Energy in the United States to 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.