View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
May 16, 2022

Russia halts electricity supply to Finland amid Nato tensions

The move comes shortly after Finland revealed plans to join Nato, but is not understood to be directly linked to this decision.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the GlobalData Executive Briefing: Ukraine Conflict


RAO Nordic, a subsidiary of Russian state energy holding Inter RAO, has suspended its electricity supply to Finnish electricity grid operator Fingrid, citing payment concerns.

The company has been importing electricity from Russia to Finland and selling it on the Nord Pool exchange for several years.

It stopped supplying power to the country on 14 May.

In a statement, RAO Nordic said: “Unfortunately, we are forced to note that for the volumes that have been sold on Nord Pool exchange since 6 May, funds have not yet been credited to our bank account.

“This situation is exceptional and happened for the first time in over 20 years of our trading history.

“Unfortunately, in the current situation of lack of cash income, RAO Nordic is not able to make payments for the imported electricity from Russia.

“Therefore, we are forced to suspend the electricity import starting from 14 May.

“We hope that the situation will be improved soon and the electricity trade with Russia could resume.”

Last week, Russia threatened to take ‘retaliatory steps’ after Finland announced plans to join the North Atlantic Treaty Organisation (Nato), the BBC reported.

RAO Nordic’s decision to suspend its power supply to Finland is not understood to be directly linked to the country’s decision to join Nato.

In a statement, Fingrid said there is no threat to the sufficiency of electricity in the country.

Fingrid power system operations senior vice-president Reima Päivinen said: “The lack of electricity import from Russia will be compensated by importing more electricity from Sweden and by generating more electricity in Finland.”

Last month, Fingrid reduced its electricity imports from Russia in an effort to secure Finland’s power system following an assessment of the risks to the power system.

The company trades electricity with RAO Nordic over 400kV interconnectors.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Wednesday. The power industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Power Technology