Finland's Gasum Terminates Gazprom Pipeline Gas Contract

(Reuters) — Finnish state-owned gas wholesaler Gasum said on Monday it had terminated a contract to buy natural gas from Gazprom Export via pipelines from Russia.

Gazprom ceased pipeline-based natural gas deliveries to Gasum in May 2022 in a dispute over payments, and the two sides had been in talks to resolve the matter.

Gazprom Exports confirmed it had received notice of the deal now being terminated.

"Gazprom Export LLC confirms it had received a notification from the Finnish company Gasum about the termination of a long-term contract for the supply of pipeline gas. The company is conducting a legal analysis of further steps in this matter," it said.

Gazprom demanded that European countries pay for Russian gas supplies in rubles because of sanctions imposed over Moscow's invasion of Ukraine, which Finland refused to do.

An arbitration panel last November ruled that Gasum was not obliged to pay in rubles but ordered the two sides to negotiate to resolve the situation.

"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," the Finnish company said in a statement.

The termination concerns only pipeline supply, Gasum said.

"The long-term LNG supply contract Gasum has with Gazprom Export remains in place," the Finnish company said.

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