Finland to enforce ban on Russian LNG by next spring, says official

Finland hopes to enforce ban on Russian LNG in spring 2025

Finland would be first to use an EU option to unilaterally ban Russian gas and LNG

Finland will most likely rely on supply from Norway and the US at small-scale terminals

LONDON (ICIS)–Finland’s government has told ICIS it hopes to enforce a ban on Russian LNG in spring 2025, after proposing the legislation this winter.

“The legislative proposal on banning Russian gas is due winter 2024-2025 …most likely early 2025,” Director General of the Energy Department at the Ministry of Economic Affairs and Employment, Riku Huttunen, told ICIS.
“After that the ban might be in force in spring 2025.”

His comments follow last week’s news that Finland will propose by winter legislation to ban.

Finland’s LNG import terminal, Inkoo, already effectively bans Russian LNG due to the terminal’s rules of operation.

LNG is still imported from Russia at Finland’s Pori and Tornio terminals under long-term agreements. The two small-scale terminals are not connected to Finland’s gas grid.

Finland’s foreign trade statistics indicate that 65% of gas imports in the fourth quarter 2023 came from the US, with 23% coming from Norway and 7% from Russia.

Replacing Russian supplies to the small-scale market following winter is expected to go ahead relatively smoothly.

“The LNG market is quite liquid at the moment, so I expect no difficulties in replacing the small amounts of Russian LNG still used in Finland,” said Huttunen.

“The companies make the commercial decisions,” he said. “Currently, the most important suppliers to the Finnish-Baltic gas market are Norway and the US.”

Finland’s Ministry of Economic Affairs and Employment cited earlier this month European Commission analysis that gas supply over winter 2024-2025 will be sufficient to meet Europe’s needs. It also referred to the completion of repair work on the Balticonnector.