RAO Nordic, a subsidiary of Inter ROA, said it would stop exporting electricity to Finland without giving specifics amid the biggest tensions across Russia-surrounded Europe.Ukraine Lufta, reported Reuters.
“This situation is extraordinary and has occurred for the first time in over twenty years of our trading history,” RAO Nordic said in a statement, according to the report.
RUSSIA BRIEFLY CONSIDERS GAS FINLAND SUPPLY OF NATO DEMAND STATUS
Electricity, which accounts for 10% of the country’s total consumption, was cut off “for the time being” at 1am local time, Finnish network operator Fingrid said, according to the report.
“Missing imports can be replaced in the electricity market by importing more electricity from Sweden and also from domestic production,” the company added, Reuters reported.
According to the report, Fingrid is not involved in the dispute.
“Nord Pool is the one who pays for them. Fingrid is not a party to this electricity trade. We offer the transfer link from Russia to Finland,” Reima Paivinen, Fingrid’s senior vice president for operations, told the media.
The discrepancy in interrupted payments may be linked to earlier demands by Russian President Vladimir Putin, who demanded that countries pay gas tariffs in rubles, Russia’s national currency.
The request came as Russia faces austerity international sanctions.
The Finnish government said last month that it would not pay for Russian gas supplies in rubles.
Nord Pool did not confirm the ruble request, saying: “We have never had settlements in rubles, only in euros, Norwegian crowns, Swedish crowns and Danish crowns, in accordance with our standard procedures.”
Finland, which has traditionally remained neutral, has sought to unite nitonfurther escalating tensions with Russia.
On Thursday, Finnish President Sauli Niinisto and Prime Minister Sanna Marin said their country was seeking to join NATO “without delay”.
“NATO membership would strengthen Finland ‘s security. As a NATO member, Finland would strengthen the entire defense alliance,” the leaders said.
Fox Business Caitlin McFall contributed to this report.
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