Finnish Gasum terminated the contract for the supply of natural gas with Gazprom Export

Finnish Gasum announced that it had terminated a long-term contract for the supply of natural gas through the pipeline with Gazprom Export. This decision was made due to the company’s unwillingness to pay for deliveries in rubles. Gasum’s long-term LNG supply contract with Gazprom Export remains in force, the Finnish company specified.

In April 2022, Gazprom Export demanded that Gasum switch to payments in rubles instead of euros, as stipulated in the contract. The Finnish company did not agree and applied to arbitration, which ruled in November that Gasum was not obliged to change the payment procedure, after which the parties continued negotiations.

“Negotiations between Gasum and Gazprom Export have ended. The parties failed to resolve the situation within the time limit set by the arbitration court, in connection with which, on May 22, 2023, Gasum terminated the long-term contract for the supply of natural gas with Gazprom Export LLC,” the statement said. press release on the Gasum website.

As Kommersant found out in early May, the Finnish company has not been collecting its LNG cargoes from NOVATEK’s Cryogas-Vysotsk project in the Baltic for a month now. Since May 2022, Gasum has refused pipeline gas from the Russian Federation, but continued to receive LNG from Vysotsk under a contract with Gazprom Export (it is a gas export agent under an agreement with NOVATEK). The parties do not comment on the reasons for the termination of Gasum supplies.

Details – in the material “Kommersant” “LNG for Finland stuck in Russia”.

Laura Keffer