Finland announces termination of pipeline contract with Gazprom, LNG contract remains in force

MOSCOW. May 22 (Interfax) - Gasum has announced the termination of the long-term contract for the supply of pipeline gas with Gazprom Export LLC, the Finnish state-owned company said in a press release posted on its website.

Gasum in May 2022 rejected the terms and conditions of the new system for paying for Russian gas that stipulate automatic conversion into rubles, with Gazprom subsequently halting supplies.

"In addition, the companies had a significant disagreement regarding certain other demands made based on the contract. Due to these reasons, Gasum referred the matter to arbitration in accordance with the supply contract," according to the press release.

The arbitral tribunal in November ordered the parties to continue bilateral contract negotiations in order to resolve the situation.

"The negotiations between Gasum and Gazprom Export have now ended. The parties were not able to resolve the situation within the period defined by the arbitral tribunal, and, therefore, Gasum has terminated the long-term natural gas supply contract with Gazprom Export on May 22, 2023," Gasum said.

"The parties will continue to finalize the details of the contract termination. Gasum will not comment on these details of the contract termination," according to the press release.

"The termination concerns only the pipeline gas supply contract. The long-term LNG supply contract Gasum has with Gazprom Export remains in place," Gasum said.