Russia Prepares To Cut Gas Supplies To Finland Days After NATO Application

The Nordic country will be cut off from Russian gas after it refused to pay in rubles, according to the state-owned firm Gasum.

Gasum said in a statement that Russia's Gazprom told them that the gas supplies to Finland would be stopped early Saturday morning.

The situation is highly regrettable, but the company has been prepared and will be able to supply all customers.

Gasum said it will use the Balticconnector to supply natural gas from other sources.

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Russia cut off gas to Finland. Gasum didn't give a reason for the cut off of gas supplies. On Tuesday, the company said it was taking the issue of Moscow's demands for gas in rubles to an international tribunal. Gasum had no choice but to take the contract to arbitration and there was a real risk of gas supplies being cut on Friday or Saturday. Two days after the country formally asked to join NATO, it was announced that they would not be paying in rubles.

Key Background

One of the biggest exports and a major source of income for Moscow is Russian gas, and Putin wants other countries to pay for it. Bulgaria and Poland have also been excised from Russian supplies. Russia stopped the flow of gas in late April after both countries refused to pay in rubles. Europe relies heavily on Russian energy exports and the bloc has struggled to impose sanctions on the sector. According to the Polish think tank Forum Energii, Poland and Bulgaria rely heavily on Russian gas. The economic impact of losing Russia's gas supplies is likely to be limited, as it makes up around 6 percent of the country's overall usage.

The NATO application puts the Russian trade on thin ice.

Biden says that the NATO bids have complete backing from the U.S.

Russia has cut gas supplies to Poland and Bulgaria.