Russia cuts power exports to Finland over failed payments (updated)

INTER RAO Lietuva AB

16/05/2022 12:49

(Updates with analyst comment on power price impact)
    HELSINKI, May 16 (Reuters) - Russia had cut all its exports
of electricity to Finland on Monday, flow data showed, after
Russian utility Inter RAO said last week it would halt them
because it had not been paid.
    Inter RAO  IRAO.MM  said on Friday it would stop exporting
power to Finland from Saturday 1 a.m. local time (2200 GMT on
Friday) "for the time being" as it had not been paid for power
sold via pan-European exchange Nord Pool since May 6.
 urn:newsml:reuters.com:*:nL5N2X54YV
    Finnish grid operator Fingrid, which said Moscow supplied
about 10% of Finland's needs, said it could replace Russian
supplies with Swedish power and by boosting domestic production.
    It said the issue was related to Western sanctions that
affected payments, rather than being retaliation for any other
action by Finland, which was criticised by Moscow for saying it
would seek to join NATO, a move Russia has long opposed.
    "Due to these restrictions payments for sold Russian
electricity can no longer be made. The suspension is therefore
rather a consequence than a Russian countermeasure," Fingrid
said, without making reference to the NATO decision.
    Flows of Russian power to Finland on Monday were down to
nil, data from grid operator Fingrid showed. They fell from 87
megawatts to zero early on Saturday.
    Fingrid said last month it had prepared for the prospect of
Russia cutting electricity flows to Finland by restricting the
transmission capacity by a third.
    Refinitiv analysts said the loss of Russian flows would
drive up Finnish wholesale power prices by 8.20 euros to 90.20
euros per megawatt hour (MWh) for the third quarter.  

 (Reporting by Gwladys Fouche and Nora Buli; Editing by Edmund
Blair)
 ((gwladys.fouche@tr.com; +47 21 04 05 53; Reuters Messaging:
Twitter handle: @gfouche))