Finland Stopped Importing Russian Gas

by Meifan Honcharuk
Wednesday, May 24, 2023
Finland Stopped Importing Russian Gas

The state energy company "Gasum" terminated the contract with "Gazprom" ahead of schedule

In April 2022, Gazprom announced that it would only sell gas in rubles. Almost all European companies have abandoned the conditions for buying natural gas for the Russian currency, and exports have ceased. Among the affected parties was the Finnish state energy company Gasum.

Gasum imported Russian gas and liquefied it in its factories. Since 2019, the company has bought more than €730 million worth of energy resources. After the beginning of the full-scale war between Russia and Ukraine, Gasum, bound by a contract, continued cooperation with Gazprom and exported gas worth approximately €175 million.

"The contract is a so-called "take or pay" contract, which is common in gas supply contracts. This means that Gasum has to pay for a certain amount of LNG every year, whether we get it from Russia or not," Gasum.

Finnish Minister for European affairs Tytti Tuppurainen said that Gasum should stop exporting Russian gas, but then the company had no legal grounds to terminate the contract/appeal to arbitration.

In May 2022, Russia stopped gas supplies in response to Finland's refusal to pay in rubles, Gasum filed a lawsuit in the arbitration court, which stated that Gasum was not obliged to pay in rubles or on other non-contractual terms of Russia.

On May 23, 2023, it was announced that Gasum and Gazprom were unable to resolve the situation, and Gasum terminated the contract with Russia.

We remind you that Ukraine, Moldova, Germany, Serbia, etc., state energy companies have already refused Russian gas.

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