Russia to halt gas flows to Finland on Saturday

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HELSINKI — Russia’s Gazprom has informed Finland it will halt flows of natural gas from Saturday morning, Gasum said on Friday, after the Finnish state-owned gas wholesaler refused to pay its Russian supplier in roubles.

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Gazprom Export has demanded that European countries pay for Russian gas supplies in roubles because of sanctions imposed over Moscow’s invasion of Ukraine.

Most supply contracts are denominated in euros or dollars and Moscow has already cut off gas to Bulgaria and Poland last month after they refused to comply with the new payment terms.

The majority of gas used in Finland comes from Russia but gas only accounts for about 5% of its annual energy consumption.

“It is highly regrettable that natural gas supplies under our supply contract will now be halted,” Gasum Chief Executive Mika Wiljanen said in a statement.

“However, we have been carefully preparing for this situation and provided that there will be no disruptions in the gas transmission network, we will be able to supply all our customers with gas in the coming months,” he said.

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The cut-off is scheduled for 0400 GMT (midnight EST) on May 21.

The Finnish government is seeking to end decades of neutrality by joining the North Atlantic Treaty Organization, whose enlargement Moscow opposes.

In Germany, big business is drafting a plan to use an auction system to help ration available supplies in the event Russia cuts off its gas. Germany is approaching a deadline this month to pay for the fuel under the rouble scheme demanded by Moscow.

A plan prepared by Germany’s Bundesnetzagentur (BNetzA), which would be in charge of rationing in a gas supply emergency, explores which companies should get priority. “Depending on the seriousness of the shortages … it could be necessary … to cut supply of gas to some users to zero,” it said this week.

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German industry is particularly anxious about energy-intensive factories, such as glass, steel, food or drug manufacturing, as well as the chemicals sector, that provide many of the building blocks for industry.

Discussions on possible rationing have gathered urgency after Russia halted gas supplies to Bulgaria and Poland last month.

Finland said on Friday it had agreed to charter a storage and regasification vessel from U.S. based Excelerate Energy to help replace Russian supplies, starting in the fourth quarter this year.

The vessel turns liquefied natural gas (LNG) that can be shipped back into gas.

Gazprom did not immediately respond to a request for comment.

Article content

HELSINKI — Russia’s Gazprom has informed Finland it will halt flows of natural gas from Saturday morning, Gasum said on Friday, after the Finnish state-owned gas wholesaler refused to pay its Russian supplier in roubles.

Article content

Gazprom Export has demanded that European countries pay for Russian gas supplies in roubles because of sanctions imposed over Moscow’s invasion of Ukraine.

Most supply contracts are denominated in euros or dollars and Moscow has already cut off gas to Bulgaria and Poland last month after they refused to comply with the new payment terms.

The majority of gas used in Finland comes from Russia but gas only accounts for about 5% of its annual energy consumption.

“It is highly regrettable that natural gas supplies under our supply contract will now be halted,” Gasum Chief Executive Mika Wiljanen said in a statement.

“However, we have been carefully preparing for this situation and provided that there will be no disruptions in the gas transmission network, we will be able to supply all our customers with gas in the coming months,” he said.

Article content

The cut-off is scheduled for 0400 GMT (midnight EST) on May 21.

The Finnish government is seeking to end decades of neutrality by joining the North Atlantic Treaty Organization, whose enlargement Moscow opposes.

In Germany, big business is drafting a plan to use an auction system to help ration available supplies in the event Russia cuts off its gas. Germany is approaching a deadline this month to pay for the fuel under the rouble scheme demanded by Moscow.

A plan prepared by Germany’s Bundesnetzagentur (BNetzA), which would be in charge of rationing in a gas supply emergency, explores which companies should get priority. “Depending on the seriousness of the shortages … it could be necessary … to cut supply of gas to some users to zero,” it said this week.

Article content

German industry is particularly anxious about energy-intensive factories, such as glass, steel, food or drug manufacturing, as well as the chemicals sector, that provide many of the building blocks for industry.

Discussions on possible rationing have gathered urgency after Russia halted gas supplies to Bulgaria and Poland last month.

Finland said on Friday it had agreed to charter a storage and regasification vessel from U.S. based Excelerate Energy to help replace Russian supplies, starting in the fourth quarter this year.

The vessel turns liquefied natural gas (LNG) that can be shipped back into gas.

Gazprom did not immediately respond to a request for comment.