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Gazprom Export to suspend gas supplies to Finland’s Gasum on May 21 due to non-payment

Earlier, the Finnish company informed that it does not intend to make payments in rubles

MOSCOW, May 20. /TASS/. Gazprom Export will suspend gas supplies to the Finnish company Gasum on May 21 due to non-payment for gas delivered in April, Gazprom Export said in a statement.

"As of the end of the working day on May 20 (the payment deadline stipulated by the contract), Gazprom Export did not receive payment from Gasum for gas supplies in April. In this regard, Gazprom Export notified Gasum about suspension of gas supplies starting from May 21, 2022, until the payment is made in accordance with the procedure established by the decree [of the President of the Russian Federation]," the statement said.

The Finnish company also stated that it does not intend to make payments in rubles.

In response to the fact that Gasum had initiated arbitration proceedings in relation to the gas supply contract, Gazprom Export announced that it would defend its interests in the arbitration proceedings by available means.

Earlier, Gasum announced that the import of natural gas from Russia will be stopped on Saturday, May 21, at 07:00 local time (same as Moscow time). From May 21, during the coming summer season, the company will supply its customers with gas from other sources through the Balticconnector gas pipeline, Gasum said.

On May 18, the company said it expected to cut off natural gas supplies from Russia either in the evening of May 20 or early in the morning of May 21. On May 17, Gasum announced that it would not comply with Gazprom's demand to pay for the supplied gas in rubles.

According to the Russian Federal Customs Service, in 2021, Russian gas supplies to Finland amounted to about 1.8 billion cubic meters.

On March 31, Russian President Vladimir Putin signed a decree that lays out a new procedure for paying for gas supplies by buyers from unfriendly countries. Now such states must transfer funds in foreign currencies to Gazprombank, which will buy rubles on exchanges and transfer them to special ruble accounts of importers.

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