Russia will stop supplying gas to Finland after its refusal to pay in rubles, marking the third European country cut off by Moscow
Russiawill halt the supply of natural gasto Finlandon Saturday.
Gasumsaid it will not pay for the energy source in rubles to meet Moscow's demands.
Russia will halt the supply of natural gas to Finland, after Finnish energy company Gasum said it won't pay in rubles to comply with demands Moscow put in place after launching its war against
Natural gas imports to Finland under Gasum's supply contract will be suspended on Saturday at 7 a.m. local time, the company said in a statement on Friday. State-owned Gasum said it will deliver natural gas to customers from other sources through the Balticconnector pipeline that connects with Estonia.
"It is highly regrettable that natural gas supplies under our supply contract will now be halted," Mika Wiljanen, Gasum's CEO, said in the statement. "However, we have been carefully preparing for this situation and provided that there will be no disruptions in the gas transmission network, we will be able to supply all our customers with gas in the coming months."
Earlier this week, Gasum said it would take its contract dispute with Russia's Gazprom Export to arbitration.
Finland's cutoff comes after
Russian President Vladimir Putin in March ordered "unfriendly countries" to use rubles to pay for Russian gas even though contracts generally required dollar-based transactions. He made the move after Western nations imposed financial sanctions against Moscow for invading Ukraine in late February.
Poland and Bulgaria rejected paying rubles for gas supplies, saying Russia's demand would represent a breach of contract and would dodge sanctions on Russia's central bank.
Europe has been highly dependent on Russian energy for decades as Moscow supplied around 40% of the region's gas needs.
Benchmark Dutch futures contracts tracking Europe's wholesale gas price fell 1.9% to 89.40 euros per megawatt hour ($94.31) on Friday, according to data from Investing.com.
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