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Gazprom Export receives termination notice from Finland’s Gasum

Last fall the Arbitration Court of Stockholm recognized the Russian President's decree to switch to paying for gas in rubles as force majeure under the contract

MOSCOW, May 22. /TASS/. Gazprom Export has received a notice of termination of the pipeline gas supply contract from the Finnish gas company Gasum and is holding a legal review of further steps, the export arm of the Russian gas holding told TASS.

"Gazprom Export acknowledges the receipt of the notice on termination of the long-term pipeline gas supply contract from the Finnish company Gasum. The company is carrying the legal analysis of further steps on this matter," Gazprom Export said.

Gasum has terminated its long-term natural gas supply contract with Gazprom Export, the Finnish energy company said earlier today. The termination concerns only the pipeline gas supply contract, whereas the long-term LNG supply contract Gasum has with Gazprom Export remains in place.

In May 2022, Gazprom Export suspended pipeline gas supplies under its contract with Gasum due to the Finnish side’s failure to pay for April and its refusal to pay in rubles. After that Gasum said it would not fulfill Gazprom’s demand to pay for shipments of gas in rubles, adding that it had decided to file a petition in court for an investigation on the current contract with Gazprom Export, which expires at the end of 2031.

Last fall the Arbitration Court of Stockholm recognized the Russian President's decree to switch to paying for gas in rubles as force majeure under the contract and obliged Gasum to pay Gazprom Export a debt of over 300 mln euros for gas supplies. However, the court also ruled that the Finnish state energy company was not obligated to pay in rubles for Russian gas, and that the parties should continue their negotiations to resolve the situation with supplies.

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