Finland prepares to cut off energy supplies from Russia

Finland is preparing for possible termination of natural gas and oil supplies from Russia, Finnish media reported on Wednesday.
As it is specified, Russia against the background of the Ukrainian crisis may limit the supply of energy resources to the EU.
“Finland is already preparing for the possible cessation of natural gas supplies from Russia. Switching to other fuels for heating and power plants, which partially use Russian natural gas, is unlikely to cause serious problems,” public broadcaster YLE reported.
Natural gas comes to Finland mainly via two routes. There is a direct pipeline from Russia to Imatra, where gas is pumped into the Finnish gas grid.
The second route is the Balticconnector, where gas comes from Estonia via a pipe laid at the bottom of the Gulf of Finland.
At the moment Finland receives roughly the same amount of gas from both pipelines.
Olli Sipilä, executive director of Gasgrid Finland, which manages the country’s gas networks, is confident that there will be enough gas for the Finnish market even if supplies from Russia are cut off.
“Currently, the demand for gas in Finland is at about the same level as the Balticconnector’s capacity. LNG makes it possible to import gas from all over the world, and according to market data, it is also readily available,” Sipilä notes.
The Helsingin sanomat newspaper publishes a study of the oil market.
“Finland is not dependent on Russian crude oil, which is largely imported to Finland from other countries,” the paper writes.
It is noted that only one producer – Neste – supplies oil from Russia, while the network of gas stations and oil refinery Teboil, owned by Russian Lukoil, does not import fuel from Russia.
“Teboil buys fuel from Neste in Porvoo (a city in Finland) and Western Europe,” the newspaper said, citing Toni Flyckt, Teboil’s director of marketing and communications.
Researcher Birgitta Berg-Andersson of Etlan Institute of Finnish Business Studies notes that Sweden is the second largest importer of petroleum products in Finland after Germany.
“Thus, the import statistics show that the share of petroleum products produced entirely from Russian oil is less than two-thirds,” the newspaper writes.
The paper’s experts are unanimous that stopping oil supplies from Russia is highly unlikely due to the huge impact on Russia’s own economy, the country’s budget and the direct income of the population.