HomeNewsFinland's Gasum to end Russian LNG imports in line with EU sanctions

Finland's Gasum to end Russian LNG imports in line with EU sanctions

6/25/2024

Finland's Gasum, a key gas supplier to the Nordic region, will stop buying and importing Russian liquefied natural gas (LNG) in July in line with fresh European Union sanctions, the company said on Tuesday.

"Gasum complies with all sanctions imposed by the EU and will not purchase or import Russian LNG as of 26 July," it said in a statement.

EU member nations on Monday adopted a 14th package of sanctions on Russia that hit the country's gas exports for the first time.

This includes a clause prohibiting the purchase or importation of Russian LNG through European Union terminals that are not connected to the EU gas network, added at the behest of Sweden and Finland and allowing them to cancel some LNG contracts.

While other LNG sanctions under the EU's latest package do not take effect until next year, the clause applying to Finland and Sweden is effective from July 26.

"The sanctions adopted by the EU do not allow Gasum to terminate its agreement with Gazprom Export, but constitute a force majeure on the purchase or import of Russian LNG to off-grid terminals," Gasum said.

The company has a long-term LNG supply contract with Gazprom Export which was concluded before 2022 on a so-called take-or-pay agreement, obliging it pay for contracted gas regardless of whether it uses it or not.

Without sanctions, Gasum had been lacking legal grounds to stop its purchases.

"Already now the majority of the LNG sourced by Gasum has been coming from sources other than Russia and we will replace the Russian volumes with supply from other sources," a spokesperson for Gasum said.

All of the terminals operated by Gasum in Sweden and Finland fell under the latest sanctions, the spokesperson added.

Gasum buys LNG from the Kryogaz-Vysotsk plant controlled by Russian firm Novatek.

Gazprom and Novatek did not respond to requests for immediate comment.

 

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