Europe

Finland prepares for possible outage of gas supply from Russia

Finnish Businesses and the central government are preparing for a situation in which the flow of natural gas from Russia will be depleted in May. Report Helsinki Gin Sanoma.

The risk of delivery interruptions is considered a reality, as both Finland and the European Union have declared earlier last month that they will not comply with the new payment terms imposed on Russia’s gas supply.

Russia’s state-owned natural gas producer, Gazprom, has announced that compliance with the conditions is a prerequisite for continued gas supply as the reason for the recent decision to suspend supply to Bulgaria and Poland. According to information obtained by Helsinki Sanoma, Finnish state-owned natural gas importer and distributor Gasum is required to respond to payment terms by May 20.

It is believed that the same deadline was given to buyers in many other member countries.

If Russia’s natural gas flow ceases in Imatra, South Carrelia, the Finnish gas infrastructure, the liquefied natural gas terminal and the Baltic Sea connector pipeline between Finland and Estonia, will not be sufficient.

Finland and Estonia have also started a consortium to procure terminal vessels, but the terminal will be used early next winter.

In Finland, the role of natural gas is much smaller than in Eastern and Central Europe, but if the gas supply is cut off, it will account for about two-thirds of natural gas, so the industry in particular is looking for alternative suppliers or producing. Need to be reduced. Finland’s natural gas consumption.

Natural gas accounted for about 5% of Finland’s total energy consumption in 2021. However, the industry uses gas primarily as a raw material, not as an energy source.

Households that use gas for heating will take special measures as needed to ensure access to the gas.

Some companies have already taken steps to prepare for the depletion of gas supplies. Neste, one of Finland’s largest consumers of natural gas, has tested propane as an alternative to gas at the Porvoo refinery. According to the CEO, testing is promising. Peter Vanucker..

“We are more and more confident that we can manage risk. [of gas deliveries ending],” he Said To Helsinki Ginsanoma on Friday.

Gazprom has requested that gas buyers open two accounts in their financial sector, Gazprombank. One is the euro or another foreign currency and the other is the ruble. Buyers can make payments in foreign currencies as usual, but payments are not considered complete until the bank converts the payments to rubles and transfers them to a ruble-denominated account.

The European Commission believes this arrangement is problematic for two reasons.

Before being converted into rubles, the payment constitutes a kind of loan to the Central Bank of the Russian Federation. This violates the ban on transactions with central banks imposed by Block in 27 countries. Central banks can theoretically withhold payments indefinitely because there is no currency conversion deadline.

According to the European Commission, this issue could be addressed by a ruling that the payment was completed as soon as the euro-denominated payment was made.

Aleksi Teivainen – HT

https://www.helsinkitimes.fi/finland/finland-news/domestic/21465-hs-finland-preparing-for-possible-suspension-of-gas-deliveries-from-russia.html Finland prepares for possible outage of gas supply from Russia

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