Russia may cut gas to Finland soon: energy group

Russia may soon cut gas supplies to Finland due to the Nordic country’s refusal to pay Gazprom in rubles, according to the Finnish state-owned Gasum on Tuesday.

Gasum said it would take its dispute with Gazprom Export to arbitration, risking further enraged Russia as Helsinki prepares to submit its NATO membership bid on Wednesday.

“Gasum considers there to be an increased risk of the natural gas supply … being halted, and consequently the import of natural gas from Russia to Finland might end,” it said in a statement.

On Sunday, Russia suspended electricity supplies to Finland overnight after its energy firm RAO Nordic claimed payment arrears, although the shortfall was quickly replaced.

Natural gas accounts for about eight percent of Finland’s energy consumption, most of which comes from Russia.

In April, Gazprom Export demanded that future payments in the supply contract be made in rubles instead of euros.

Gasum rejected the demand.

The Finnish group said it was prepared for the possibility of a cut, and would “aim to ensure the availability of natural gas for its Finnish customers through the Balticconnector gas pipeline.”

However, it noted that “constraints on transmission capacity can make this challenging”.

Gasum chief executive Mika Wiljanen said the company “had no choice but to take the contract to arbitration.”

Moscow has repeatedly warned Finland that any NATO membership application would be “a grave mistake with far-reaching consequences.”

Several countries which have refused to pay Gazprom in rubles in order to not support Russia during the war in Ukraine, such as Poland and Bulgaria, have had their gas supplies cut by Russia.

Some payments are due in the rest of the EU in mid-May when other cuts are expected.

Eni, the Italian energy giant, announced on Tuesday that it was opening accounts in euros and rubles to meet payments due soon for the supply of Russian gas. It claimed that the move does not violate European sanctions while meeting Moscow’s demands.