Finland's state-owned energy company Gasum has announced the termination of its decades-long pipeline natural gas procurement contract with Russia's Gazprom Export.
In a statement, Gasum said that the move stems from a disagreement between the two firms over which currency should be used to pay for fossil gas imported into Finland through the Russian pipeline.
Gazprom Export has insisted since last spring that payments should be made in rubles, not euros, but Gasum did not accept this demand.
The two companies also disagreed over a number of other demands made by Gazprom Export, and Gasum referred the matter to an external arbitrator.
The arbitral tribunal issued a verdict in November last year.
"Gasum was not obligated to pay in rubles nor through the proposed payment procedure. Furthermore, the arbitral tribunal ordered Gasum and Gazprom Export to continue their bilateral contract negotiations to resolve the situation," a Gasum statement said of the ruling, adding that negotiations between the two companies have now ended with Gasum's terminaion of the contract.
Russian fossil gas has been piped into Finland since the 1970s, with the state-owned Gasum having been responsible for the supply.
Gasum and Gazprom Export also have a long-term contract for the supply of LNG (Liquified Natural Gas), which is not affected by the termination of the pipeline contract.
No gas from Russia has been imported into Finland via the pipeline since the Russian firm suspended supplies to Gasum in May 2022. Finland has however continued to import LNG from Russia under the terms of a so-called take-or-pay contract.
Would you like a roundup of the week's top stories in your inbox every Thursday? Then sign up to receive our weekly email.