Gasum announced the suspension of gas supplies from Russia to Finland

Gas supplies from Russia have been stopped, Finland will supply it in the summer season via the Balticconnector pipeline, Gasum reported. Gasgrid Finland assured that the country's system is balanced

Natural gas imports from Russia to Finland are suspended, during the entire summer season the company will purchase it from other suppliers through the Balticconnector pipeline, according to the website of the Finnish state gas company Gasum.

“Gasum will supply natural gas to its customers from other sources via the Balticconnector pipeline. Gasum filling stations in the gas network will continue to operate as usual,— said in the message.

According to the Finnish state gas operator Gasgrid Finland, gas supplies were stopped through the Imatra point, while all the volume needed by the country is already imported through Balticconnector. According to the company, “[Finland's] gas system is now balanced.”

Balticconnector connects Finland to Estonia, this pipeline provides the Finnish side with access to the Latvian natural gas storage facilities in Incukalns.

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Gasum CEO Mika Välänen said earlier that the company had prepared for such a situation and was ready to provide customers with fuel in the coming months in the absence of interruptions in the operation of the gas transport network. The company also indicated that they refused to pay for gas in rubles or according to the new scheme proposed by Russia, while there are other “substantial disagreements”; in relation to other requirements presented to the contract. Gasum “had no choice but to arbitrate the contract,” Viljanen added.

At Gazprom, previously warned that they intend to “defend their interests in arbitration by available means”, and gas supplies will be suspended due to the refusal of the Finnish side to pay for them under the new conditions.

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At the end of April, the Finnish government announced its intention to stop Russian gas supplies as soon as possible. «Purpose— get rid of all payments to Russia so that we don't use them to fund Putin's military fund. It would be undesirable to be in a situation where we have to pay for breach of contract,— said Minister for European Affairs and Corporate Governance Titti Tuppurainen.

Bloomberg learned in mid-May that Gasgrid Finland intends to charter a specialized tanker used as an offshore LNG terminal from US Excelerate Energy. Helsinki believed that this deal would stop the import of Russian gas. The head of Excelerate Energy Stephen Cobos noted that Finland and Estonia need 3 billion cubic meters. m of gas annually, while the tanker is capable of delivering 5 billion cubic meters. According to the company, this is about 52 freight shipments.

The Exemplar vessel, which is currently in Argentina, will sail to Finland by the end of the year. The agreement was signed for ten years, while the surplus gas can be sold to neighboring countries, including Estonia.

The contract between Gasum and Gazprom Export valid until the end of 2031. The Russian company reported that it supplied the Finnish side in 2016-2019 with about 2.5 billion cubic meters. m of gas. In 2020, against the backdrop of the spread of the coronavirus, supplies fell by 34.5%, but in the first half of 2021 they reached 1.035 billion cubic meters. m, which is 35.6% more than in the same period last year.

According to Bloomberg, Finland purchased 92% of natural gas from Russia last year, but this type of fuel accounts for only 5% of energy, consumed in the country.

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