Wednesday, August 17, 2022
HomeBusinessAfter NATO Application, Russian Operator Suspends Electricity Supply to Finland

After NATO Application, Russian Operator Suspends Electricity Supply to Finland

RAO Nordic, a Russian energy company, has announced that it would stop delivering electricity to Finland as of Saturday due to financial issues.

The firm claimed it had not been compensated for earlier deliveries.

Russia supplied just a small fraction of Finland’s power, according to the grid operator, and that it could be replaced with alternate sources.

After Finland announced its intention to join Nato on Thursday, Russia warned to take “retaliatory measures.”

Finland shares a 1,300-kilometer (810-mile) border with Russia, and has hitherto avoided antagonizing its eastern neighbor by staying out of Nato. However, since Russia’s invasion of Ukraine, popular support for Nato membership has risen dramatically.

Finland is set to publicly declare its intention to join on Sunday.

Rao Nordic’s decision was not made in response to Finland’s decision.

“This circumstance is extraordinary and occurred for the first time in over twenty years of our trading experience,” the Russian state-owned corporation stated.

Rao Nordic and Fingrid, the Finnish grid operator, both declined to comment on the payment issues.

Last month, Russia cut off gas supplies to Bulgaria and Poland after they refused to pay in roubles, which they claimed would violate Western sanctions.

Russia’s Gazprom stated this week that it will discontinue providing gas through the Yamal-Europe pipeline in Poland.

Fingrid said it did not foresee any electrical shortages as a result of the shutdown because Russia only supplies around 10% of Finland’s electricity.

“We will compensate for the shortage of electricity imports from Russia by buying more electricity from Sweden and generating more electricity in Finland,” said Reima Päivinen, Fingrid’s senior vice president of power system operations.

As the weather warms, demand will decrease, while a large quantity of additional wind power output is likely to come online. Fingrid stated that a new nuclear power plant, set to start this summer, will more than compensate for the loss of Russian supply.

Bob Carlson
Bob Carlson
Bob Carlson is a business journalist, with over a decade of experience in the trenches of reporting up-to-date business news for publications all over the world. With a wealth of knowledge at his back, Bob strives to bring the most important insights into the business world for TheOptic daily.
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