Russia announced on Saturday its intent to halt natural gas exports to Finland after the country refused to make its payments in the Russian currency of rubles, making it the third country to be cut off from the Kremlin’s supply.
The move comes just days after Finland submitted an application to join NATO in response to the monthslong war in Ukraine, angering Russia, which had previously warned of retaliatory action if such a move was made. Finnish gas providers expect to continue operating normally despite the Russian pause, as officials say they will receive fuel from an alternative pipeline in Estonia.
“It is highly regrettable that natural gas supplies under our supply contract will now be halted,” said Mika Wiljanen, CEO of Gasum, Finland’s energy provider. “However, we have been carefully preparing for this situation, and provided that there will be no disruptions in the gas transmission network, we will be able to supply all our customers with gas in the coming months.”
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The Finnish government also signed a 10-year agreement on Friday that ensures the country will have access to a U.S. liquefied natural gas terminal ship as another energy supply option.
Finland is the third government to be cut off from Russia’s gas exports, with the Kremlin isolating Poland and Bulgaria in April after the two countries refused to pay in rubles. The demand was part of Russian President Vladimir Putin’s efforts to bolster the value of the ruble, which fell dramatically shortly after its invasion of Ukraine began. The currency has since rebounded.
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Finland and Sweden both submitted applications to join NATO earlier this week, with members signaling a quick approval process despite the ratification period typically taking up to a year. Their membership would leave Russia surrounded in the Baltic Sea and the Arctic by alliance members and effectively defeat Putin’s main directive of halting the eastward expansion of NATO.
Although Putin initially warned of retaliation if Finland chose to join the alliance, he told leaders of the Collective Security Treaty Organization on Monday that Russia has "no problems” with the decision and that its NATO membership would cause "no problems at all."