Russia Halts Gas Supplies to Finland
Russia on Saturday halted providing natural gas to
neighboring Finland, which has angered Moscow by applying for NATO membership,
after the Nordic country refused to pay supplier Gazprom in rubles.
Natural gas accounts for about 8% of Finland's energy
consumption and most of it comes from Russia.
Following Russia's Feb. 24 invasion of Ukraine, Moscow has
asked clients from "unfriendly countries" -- including EU member
states -- pay for gas in rubles, a way to sidestep Western financial sanctions
against its central bank.
Finnish state-owned energy company Gasum said it would make
up for the shortfall from other sources through the Balticconnector pipeline,
which connects Finland to Estonia, and assured that filling stations would run
normally.
"Natural gas supplies to Finland under Gasum's supply
contract have been cut off," the company said in a statement.
Gasum said Friday that it had been informed by Gazprom
Export, the exporting arm of Russian gas giant Gazprom, that the supply would
stop on Saturday morning.
In April, Gazprom Export demanded that future payments in
the supply contract be made in rubles instead of euros.
Gasum rejected the demand and announced on Tuesday it was
taking the issue to arbitration.
Gazprom Export said it would defend its interests in court
by any "means available.”
Gasum said it would be able to secure gas from other sources
and that gas filling stations in the network area would continue "normal
operation."
In efforts to mitigate the risks of relying on Russian
energy exports, the Finnish government on Friday also announced that the
country had signed a 10-year lease agreement for an LNG (liquefied natural gas)
terminal ship with US-based Excelerate Energy.
On Sunday, Russia suspended electricity supplies to Finland
overnight after its energy firm RAO Nordic claimed payment arrears, although
the shortfall was quickly replaced.
Finland, along with neighboring Sweden, this week broke its
historical military non-alignment and applied for NATO membership, after public
and political support for the alliance soared following Russia's invasion of
Ukraine.
Moscow has warned Finland that any NATO membership
application would be "a grave mistake with far-reaching consequences.
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