Russian Energy Company Cuts Off Finland’s Electricity

You are currently viewing Russian Energy Company Cuts Off Finland’s Electricity

Russian energy company RAO Nordic shut down electricity supplies to neighboring Finland over the weekend, claiming it had not received payment from Finland due to sanctions.

RAO Nordic, a subsidiary of Russian energy company Inter RAO, suspended electricity exports on May 14, according to an announcement by Finland’s majority state-owned national electricity transmission grid operator Fingrid.

“In practice, the notification means that there will be no Russian electricity in Finland for the time being,” said Fingrid Reima Päivinen Director of Operations. said state publisher Yle.

About ten percent of Finland’s electricity is imported from Russia, but Fingrid claimed that even if no electricity is imported from Russia, Finns’ electricity needs will be met.

“Of course, the spring-summer and consumption amount decreased compared to the peak winter consumption. Finland will do just fine without Russian electricity. “Replacement electricity comes from local production or imports predominantly from Sweden and the Baltics.”

RAO Nordic claimed the shutdown was related to underpayments saying“Due to problems in receiving payments for electricity sold on the market, direct or bilateral sale of electricity imported from Russia will be suspended until further notice.”

Others, including lobbyist Jukka Leskelä, CEO of the Energy Industry Association, have asked questions about the timing of the power outage, saying the move may be linked to Finland’s accession to the NATO alliance, following the announcement by Finnish President Sauli Niinistö and Prime Minister Sanna Marin. last week they supported the country’s accession to NATO.

Russia has previously expressed dissatisfaction with the potential joining of both Finland and Sweden in NATO.

On Monday, Russian President Vladimir Putin said: “When it comes to enlargement, Russia has no problems with these states – it hasn’t. So in that sense, there is no immediate threat to Russia from its (NATO) enlargement to include these countries.”

“But the expansion of military infrastructure to this region will certainly trigger our response,” Putin said.

RAO Nordic’s move to cut its supply to Finland means that Russian energy giant Gazprom will no longer send gas exported to Europe via the Yamal pipeline, which runs through Poland, to reach Germany, the largest Russian gas importer in Europe. came after the announcement. .

“It is prohibited to transact and make payments to persons under sanction. For Gazprom in particular, this means prohibiting the use of a gas pipeline owned by (Polish company) EuRoPol GAZ to transport Russian gas through Poland,” said Gazprom representative Sergey Kupriyanov.

Earlier this year, following sanctions that came into effect after Russia’s invasion of Ukraine, President Putin announced that “non-enemy” nations would have to pay for energy in rubles rather than euros or dollars.

Gazprom bank then announced a plan that would allow countries to deposit euros and dollars, and the bank would then convert the money into rubles and transfer the rubles to a new account that would later be used to pay for energy.

Some companies, such as Italian energy giant Eni and others, are said to be preparing to open accounts in rubles late last month to join the plan, which allegedly allows companies to evade sanctions.

Follow Chris Tomlinson on Twitter at: @TomlinsonCJ or email ctomlinson(at)