Russia Suspends Finland’s Gas Supply
May 26, 2022 – Russia has terminated gas supplies to Finland, the third country to be boycotted by Russian gas giant Gazprom to-date, after the country refused to make its payment in the Russian Ruble.
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According to the International Energy Agency, Finland is dependent on Russia for 68% of its natural gas. However, Gasum, Poland’s state-owned gas wholesaler, has stated that they are prepared for such a situation and there will be no disruption in the gas supply for the coming months. Gasum VP, Olga Väisänen announced that Finland is receiving natural gas through its Baltic connection via a pipeline connection with Estonia & Latvia.
Leading into this situation, last month Finland formally announced its goal of joining NATO, ending decades of neutrality. Many EU leaders and national security experts view Russia’s move to cut off gas supply as a retaliatory move in response to this decision.
How a Lack of Natural Gas Could Impact Finland’s Industry
The electronics industry plays a key role in Finnish economy. Since the founding of the telecom giant Nokia in 1865, Finland has home to a constantly booming electronics market. The technology industry sector alone brings in 28% of Finland’s national GDP value. Being unable to supply natural gas could easily halt factory production since gas is necessary for heating and painting facilities.
In addition to electronics, Finland has a robust machinery manufacturing sector, ranging from forest machines, tractors, military vehicles, buses and other mechanical equipment. Finland also has a booming shipbuilding industry, employing over 25,000 people and an estimated annual profit of over 7.7 billion Euro’s.
With such a vast majority of its industry reliant on manufacturing of some sort, and its lack of natural fossil fuels, Finland, and its economy, are particularly reliant on external sources for its natural gas.
While Finland currently has secured other sources of natural gas, there’s uncertainty regarding the amount of time that these supplies can hold out.
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