© Reuters. FILE PHOTO: A view reveals valves close to a drilling rig at a fuel processing facility, operated by Gazprom firm, at Bovanenkovo fuel discipline on the Arctic Yamal peninsula, Russia Could 21, 2019. Image taken Could 21, 2019. REUTERS/Maxim Shemetov/File Picture
By Terje Solsvik
OSLO (Reuters) – Russia’s Gazprom (MCX:) on Saturday halted fuel exports to neighbouring Finland, within the newest escalation of an power funds dispute with Western nations.
Gazprom Export has demanded that European nations pay for Russian fuel provides in roubles due to sanctions imposed over Moscow’s invasion of Ukraine, however Finland refuses to take action.
The transfer by Gazprom comes similtaneously Finland is making use of to affix the NATO navy alliance, a call spurred by Russia’s invasion of Ukraine.
“Gasoline imports by means of Imatra entry level have been stopped,” Finnish fuel system operator Gasgrid Finland mentioned in a press release on Saturday.
Imatra is the entry level for Russian fuel into Finland.
Finnish state-owned fuel wholesaler Gasum on Friday mentioned Gazprom had warned that flows could be halted from 0400 GMT on Saturday morning.
Gasum and Gazprom additionally confirmed on Saturday the flows had stopped.
“Pure fuel provides to Finland beneath Gasum’s provide contract have been minimize off,” Gasum mentioned in a press release.
“Ranging from right this moment, through the upcoming summer season season, Gasum will provide to its prospects from different sources by means of the Balticconnector pipeline.”
Balticconnector hyperlinks Finland to neighbouring Estonia’s fuel grid.
Gazprom Export on Friday mentioned flows could be minimize as a result of Gasum had not complied with the brand new Russian guidelines requiring settlement in roubles.
The vast majority of fuel utilized in Finland comes from Russia however fuel solely accounts for about 5% of its annual power consumption.
Most European provide contracts are denominated in euros or {dollars} and Moscow already minimize off fuel to Bulgaria and Poland final month after they refused to adjust to the brand new fee phrases.
Gasum, the Finnish authorities and particular person fuel 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 fuel system is in stability 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 fuel (LNG), which arrives on ships, again into common fuel.
