Finland’s Gasum terminates Gazprom contract

23 May, 01:50 AM
Russia stops gas supplies to Finland in May 2022 (Photo:Maxim Shemetov / Reuters)

Russia stops gas supplies to Finland in May 2022 (Photo:Maxim Shemetov / Reuters)

Finnish state-owned natural gas provider Gasum has terminated its long-term contract with Russia’s Gazprom, Reuters reported on May 22. 

Originally signed to ensure the flow of Russian natural gas to Finland via overland pipelines, the contract was suspended due to a payment dispute that led to Russia halting gas supplies to Finland in May 2022.

At the time, Gasum CEO Mika Viljanen said that the termination of deliveries was “unfortunate,” but the company was ready for such a scenario.

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Gazprom had demanded that European countries pay for gas shipments in rubles due to sanctions imposed over the invasion of Ukraine – something Finland refused to do.

In November 2022, and international arbitrage ruled that Gasum was not obligated to pay in rubles, but ordered both parties to attempt to negotiate a settlement. Gasum and Gazprom could not resolve their dispute, and now, a year later, the contract has been terminated.

Notably, the terminated contract only applies to pipeline supplies – the long-term LNG supply contract remains in force.

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