Russia has refused to supply natural gas to Finland as the Nordic nation refuses to pay in Rubles. Finland is the third European nation so far that has lost gas procurement from Russia upon failure to pay in Rubles. According to information provided by Gasum Oy, a Finland based gas importer, Poland and Bulgaria were also cut off from Russian gas supplies earlier this week for the same reason.
“Most in the market expect Finland to be the only buyer to have deliveries cut at this time,” but “the risk remains that buyers elsewhere could also suffer the same fate,” said Tom Marzec-Manser, head of gas analytics at ICIS in London, citing a recent poll of traders by the company.
The lost supplies will likely have a limited impact on the Nordic nation’s economy, with the fuel accounting for just about 5% of the energy mix. It’s mainly used by factories rather than for heating like in many other European nations. The government has pushed for a fast exit from Russian fossil fuels.
“Gazprom Export informed Gasum that natural gas supplies to Finland under Gasum’s supply contract will be cut on Saturday,” the Finnish company said. Gazprom Export, the export arm of gas giant Gazprom, said it hadn’t received payment for April supplies by close of business on May 20 — the payment deadline, according to a statement. Gas flows will be halted “starting from May 21 and up until the payment is made in line with the order” given by President Vladimir Putin on March 31, it said.
