Finland's Gasum terminates gas supply contract with Gazprom

Finnish state-owned gas wholesaler Gasum has terminated its contract to purchase gas from Russian gas company Gazprom via pipelines. The Finnish company announced this today. Gazprom stopped pipeline supplies to Gasum last May over a payment dispute. The companies have since held talks to resolve the dispute, Reuters reported.

Gazprom Export, Gazprom’s export division, confirmed that the contract had been terminated. „Gazprom Export confirms that it has received notice from Finnish company Gasum terminating the long-term contract for pipeline gas supplies,“ it said. It added that it had begun a legal review of the next steps in the matter.

Last year, Gazprom began demanding that its European customers pay for its supplies in rubles. It made the demand in response to economic sanctions imposed on Russia by Western countries over its attack on Ukraine.

Finland rejected the demand for payments in rubles last year. An arbitration tribunal ruled in November that Gasum was not required to pay in rubles. However, it also ordered both sides to hold talks to resolve the situation.