Russia halts energy exports to Finland over non-payment

Reuters. – Russia on Monday cut all of its electricity exports to Finland, according to flow data, after Russia’s Inter Rao said last week it would cut them for non-payment.

Inter RAO said on Friday that it would stop exporting energy to Finland from Saturday 1 a.m. local time (2200 GMT Friday) “for the time being” as energy sold through Inter RAO has not been paid for. Pan-European Stock Exchange Nord has been gathering since May 6.

Finnish network operator Vingrid, which said Moscow supplies about 10% of Finland’s needs, added that it could replace Russian supplies with Swedish energy and increase domestic production.

The company said the case was about Western sanctions affecting payments, not retaliation for any further action by Finland, which Moscow criticized after it said it would seek to join NATO, a move long opposed by Russia.

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Due to these restrictions, it is no longer possible to make payments for the Russian electricity sold. Therefore, the suspension is more a result of a Russian response,” said Vingrid, without referring to the NATO decision.

Russian energy flows to Finland on Monday were zero, according to data from grid operator Vingrid. At dawn on Saturday it fell from 87 megawatts to zero.

Vingrid said last month that it had prepared for the possibility that Russia would cut off the flow of electricity to Finland by restricting transmission capacity by a third.

Refinitiv analysts said the loss of Russian flows would push Finland’s wholesale electricity prices by €8.20 to €90.20 per megawatt-hour in the third quarter.

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