Finland suspends Russian LNG imports

As of July 26, Finland officially stopped importing liquefied natural gas (LNG) from Russia, switching to deliveries from Norway. This decision is the direct result of the latest European Union sanctions, which prohibit direct and indirect purchase of LNG from Russia.

New European Union sanctions

The European Union introduced the 14th package of sanctions against Russia, which first affected the Russian gas sector. These sanctions include a ban on the purchase or import of Russian LNG through EU terminals which are not integrated into the EU gas network. The introduction of these restrictions was the result of requests from Sweden and Finland to cancel certain LNG contracts.

Impact of sanctions on Gasum

Gasum, a gas-energy company controlled by the Finnish State, has announced that sanctions prevent him from directly terminating the existing contract with Gazprom Export, but represent a higher force that allows him to stop buying or importing Russian LNG into terminals outside the gas network.

The company has a long-term LNG delivery contract with Gazprom Export, concluded before 2022 on a "take-or-pay" basis. This means that Gasum is obliged to pay annually for a certain amount of gas, whether or not it is received.

Alternative LNG sources

Before introducing sanctions, Gasum had no legal basis for stopping purchases from Russia. The company had already begun to obtain most of the LNG from suppliers outside Russia and plans to replace Russian volumes with gas from alternative sources, mainly from Norway. All Gasum terminals in Sweden and Finland are subject to new sanctions.

Finland's decision to end imports of Russian LNG and switch to deliveries from Norway underlines the country's energy independence and compliance with European sanctions. This is an important step towards the stability and energy security of the region, as well as independence from Russian energy resources.

Written by Mariusz Dasiewicz