Finland’s Gasum terminates Gazprom contract

Russia stops gas supplies to Finland in May 2022
Russia stops gas supplies to Finland in May 2022

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.

Read also: Gazprom dealt fresh blow as Moldova ditches Russian gas entirely

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

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.

Read also: Moldova signs contract for gas supplies from Greece, depriving Gazprom of another market

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.

Read also: Media find abandoned villa of dictator's close friend in Finland

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

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Read the original article on The New Voice of Ukraine