OSLO (Reuters) – Russia’s Gazprom on Saturday halted gasoline exports to neighbouring Finland, within the newest escalation of an vitality funds dispute with Western nations.
Gazprom Export has demanded that European international locations pay for Russian gasoline provides in roubles due to sanctions imposed over Moscow’s invasion of Ukraine, however Finland refuses to take action.
The transfer by Gazprom comes concurrently Finland is making use of to affix the NATO army alliance, a call spurred by Russia’s invasion of Ukraine.
“Fuel imports via Imatra entry level have been stopped,” Finnish gasoline system operator Gasgrid Finland mentioned in a press release on Saturday.
Imatra is the entry level for Russian gasoline into Finland.
Finnish state-owned gasoline wholesaler Gasum on Friday mentioned Gazprom had warned that flows can be halted from 0400 GMT on Saturday morning.
Gasum and Gazprom additionally confirmed on Saturday the flows had stopped.
“Pure gasoline provides to Finland below Gasum’s provide contract have been lower off,” Gasum mentioned in a press release.
“Ranging from right this moment, in the course of the upcoming summer time season, Gasum will provide pure gasoline to its clients from different sources via the Balticconnector pipeline.”
Balticconnector hyperlinks Finland to neighbouring Estonia’s gasoline grid.
Gazprom Export on Friday mentioned flows can be lower as a result of Gasum had not complied with the brand new Russian guidelines requiring settlement in roubles.
The vast majority of gasoline utilized in Finland comes from Russia however gasoline solely accounts for about 5% of its annual vitality consumption.
Most European provide contracts are denominated in euros or {dollars} and Moscow already lower off gasoline to Bulgaria and Poland final month after they refused to adjust to the brand new cost phrases.
Gasum, the Finnish authorities and particular person gasoline consuming firms in Finland have mentioned they have been ready for a shutdown of Russian flows and that the nation will handle with out.
“The Finnish gasoline system is in steadiness each bodily and commercially,” Gasgrid mentioned on Saturday.
Finland on Friday mentioned it had agreed to constitution a storage and regasification vessel from U.S. based mostly Excelerate Vitality to assist substitute Russian provides, beginning within the fourth quarter this yr.
The vessel turns supercooled, liquefied pure gasoline (LNG), which arrives on ships, again into common gasoline.
Modifying by Gwladys Fouche; modifying by David Evans
