RAO North Oy, the European arm of Russia’s Inter RAO, will halt electricity imports to Finland over payment issues, with the disruption set to begin the following day. The decision marks a significant turn in energy trade between the two countries as Finland navigates broader tensions with Russia amid regional security concerns and ongoing discussions about NATO membership. The move follows months of mounting questions about how energy flows will adapt to evolving political and economic pressures in the region.
The company announced on its website that imports to Finland would be suspended starting May 14. The notice underscored that while electricity had long flowed from Russia into Finland, the present cash-flow gaps could not be bridged, forcing a temporary halt in supply. The interruption comes at a moment when Finland is reassessing its energy diversification strategies against the backdrop of a shifting international landscape and heightened security considerations.
RAO Nordic Oy pointed out that it has been sourcing electricity from Russia for many years and selling it into Nord Pool, highlighting that payments for sales since May 6 had not yet reached its accounts. The delay in inflows has stressed the company’s ability to pay for the energy it imports, making the suspension a necessary measure to preserve liquidity. The firm described the situation as exceptional and a departure from its more than two decades of routine commercial activity.
Officials stressed that the decision stems from a cash-flow shortfall rather than a change in the technical capacity of the grid. Without timely payments for imported electricity, the company faced a liquidity constraint that prevented continued imports. The statement conveyed a sense of cautious optimism, expressing a hope that circumstances would improve and that electricity trade with Russia could be resumed once payment flows stabilized.
In related steps, Fingrid, Finland’s national transmission system operator, announced last April a reduction in cross-border transmission capacity at the Russian border. The cap on imports was lowered from around 1,300 megawatts to about 900 megawatts, a move described as a risk-managed response to geopolitical developments and to safeguard the reliability of the country’s energy system.
Fingrid framed the alteration as a prudent assessment of system risk given the evolving international situation and the ongoing military conflict in Ukraine. The company emphasized that the decision aimed to maintain security of supply for Finnish consumers while allowing room to adjust if the security picture changes or if energy markets normalize.
Inter RAO operates as Russia’s primary electricity import and export entity, with Finland historically representing a major market for its power transfers. The relationship has been shaped by long-standing energy ties, subject to the broader political climate and regulatory actions in the region. Data from recent years show Finland sourcing a sizable portion of its electricity from neighboring suppliers, including Russia, which has contributed to Finland’s energy mix during various seasonal conditions.
For context, in the year 2021 the export balance captured a substantial share of Finland’s electricity supply, with a total of 21.77 billion kilowatt-hours exported by nearby producers, of which 8.2 billion kilowatt-hours originated from Russia. The reliance on cross-border electricity trade underscored the importance of stable financial flows and clear regulatory guidance to maintain consistent energy delivery. As Finland continues to monitor the situation, the focus remains on ensuring a dependable supply for households and industries while seeking alternative supply routes and market arrangements when needed.