Beatrice Lang
Finland's plans to join NATO have been met with retaliation from Russia, which has cut off electricity exports to the country. This move comes as tensions rise between the two nations, with Russia warning Finland that abandoning military neutrality to join NATO would be wrong. Finland has assured its citizens that they will not face electricity shortages, stating that the missing imports can be replaced by importing more electricity from Sweden and through domestic production.
| Characteristics | Values |
|---|---|
| Date of electricity cut-off | 14 May 2022 |
| Reason for electricity cut-off | Non-payment of dues |
| % of Finland's electricity imported from Russia | 10-14% |
| Finland's response to the cut-off | Finland's grid operator, Fingrid, said that the country will replace the electricity with domestic production or imports from Sweden |
| Russia's response to the cut-off | Russia warned Finland of military and political repercussions if it joins NATO |
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What You'll Learn
Finland's electricity imports from Russia
Finland has historically benefited from cheap Russian energy, with large Finnish energy companies making significant profits from trade with Russia. In 2021, Finland sourced 14% of its electricity from Russia. However, in May 2022, Russia halted electricity deliveries to Finland, citing payment problems. RAO Nordic, a subsidiary of Russian utility Inter RAO, stated that Finland had not paid for electricity imported since May 6th. This marked the first time in over twenty years of trading history that such an issue had arisen.
Finland's grid operator, Fingrid, asserted that replacing Russian power imports would not be challenging. Fingrid's senior vice president of power system operations, Reima Päivinen, stated that the lack of electricity import from Russia would be compensated by importing more electricity from Sweden and generating more electricity within Finland. Finland's highly diverse energy mix and security of supply thinking have placed it in a better position than many other countries in terms of energy transition.
The decision by RAO Nordic to cut off electricity supplies to Finland came ahead of Finland's anticipated announcement to join NATO. While the company did not explicitly link the two issues, the timing was notable. Russia had previously threatened to take "retaliatory steps" after Finland expressed its intention to join the alliance. Finland shares a 1,300-kilometer border with Russia and had previously maintained a neutral stance to avoid tensions with its eastern neighbor. However, Russia's invasion of Ukraine led to a surge in public support for NATO membership in Finland.
Despite the cut-off of electricity imports from Russia, Finland's overall energy transition away from Russian supplies has been accelerated. Finland has started its green transition and is fortunate to have a highly diverse energy mix. With only a small percentage of its electricity supplied by Russia, Finland is in a better position than gas-dependent Central European countries. Long-term supply contracts, such as those for uranium and LNG, remain obstacles to a complete exit from Russian energy. However, Finland's overall high dependency on Russian energy, with one-third of its energy coming from Russia, has been a significant challenge in the decoupling process.
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Finland's NATO membership bid
In the fall of 2021, as Russia began amassing troops near Ukraine's borders, Moscow demanded 'security guarantees' against further NATO enlargement. This was seen as a direct threat to Finland's sovereignty and sparked a debate in the Finnish media about the potential benefits of joining NATO. The full-scale Russian invasion of Ukraine in early 2022 further solidified Finland's determination to seek NATO membership.
Finland's President Sauli Niinisto signed the required legal amendments for NATO membership in March 2023, officially sealing Finland's historic bid. Finland then awaited approval from all 30 NATO members, with Turkey and Hungary being the last two members to ratify the bid. On March 30, 2023, Turkish lawmakers unanimously voted in favor of Finland's bid, and Finland's flag was hoisted at NATO Headquarters on April 4, 2023, marking its official entry into the Alliance.
Finland's path to NATO membership was abrupt and unexpected, shaped by the unfolding events of Russia's war in Ukraine. The Finnish government believed that joining NATO would enhance regional stability and security, and that Finland would be better protected against potential Russian aggression as a member of the Alliance. While Russia condemned Finland's decision, accusing it of being based on "Russophobic hysteria", Finland's membership bid was a direct response to Russia's actions in Ukraine and the perceived threat to its own security.
In May 2022, amidst Finland's NATO membership bid, Russia cut off electricity exports to Finland, citing payment issues. However, Finland's grid operator, Fingrid, assured that replacing Russian power imports would not be difficult and could be achieved by increasing electricity imports from Sweden and domestic electricity generation in Finland.
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Russia's invasion of Ukraine
In May 2022, RAO Nordic, a Russian energy supplier, cut off electricity exports to Finland, citing payment problems. This action took place ahead of Finland's announcement of its plans to join NATO. Finland's grid operator, Fingrid, stated that it would not be difficult to replace Russian power imports, and that the country could increase electricity imports from Sweden and generate more electricity domestically.
Now, for Russia's invasion of Ukraine:
In February 2022, Russian President Vladimir Putin announced a "special military operation" in Ukraine, stating that it was to support the Russian-backed breakaway republics of Donetsk and Luhansk, whose paramilitary forces had been fighting Ukraine in the Donbas region since 2014. Putin challenged Ukraine's legitimacy as a state, baselessly accusing the Ukrainian government of being neo-Nazis committing genocide against the Russian minority in the Donbas. He claimed that Russia's goal was to "demilitarize and denazify" Ukraine and asserted that Russia had no plans to occupy the country.
The Russian invasion of Ukraine included air strikes and a ground offensive from multiple fronts, including Belarus, Crimea, and the Donbas region. The invasion was met with widespread international condemnation, with many countries imposing sanctions on Russia and its ally Belarus, and providing humanitarian and military aid to Ukraine. The United Nations General Assembly passed a resolution demanding a full Russian withdrawal, and the International Court of Justice ordered Russia to halt its military operations.
Despite Russia's military advances and Ukraine's counteroffensives, the war has continued for several years, with neither side gaining significant territory. Russia has been accused of committing severe human rights violations and war crimes, including attacks on civilians and civilian infrastructure, such as the energy grid. Ukraine has also launched cross-border offensives into Russia, including an offensive into the Kursk Oblast in August 2024, where North Korean soldiers assisted Russia.
The conflict has had far-reaching consequences, including disruption to Ukrainian agriculture and shipping, contributing to a world food crisis, and causing local environmental damage. The war has also impacted global climate policy and led to the displacement and seizure of homes from thousands of Ukrainian residents.
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Finland's energy self-sufficiency
In May 2022, Russia halted electricity exports to Finland, citing payment problems. This cut-off occurred ahead of Finland's announcement to join NATO. Finland's grid operator Fingrid asserted that replacing Russian power imports would not be challenging. In 2021, Finland imported 20.5% of its consumed electricity, with 10% sourced from Russia.
Finland has been investing in energy self-sufficiency, considering it a part of its internal security policy. The country has diversified its energy mix and increased domestic production, particularly in nuclear and wind power. Finland plans to build more nuclear reactors to achieve energy self-sufficiency. The Olkiluoto 3 nuclear reactor, facing delays, is crucial to the country's proclaimed self-sufficiency.
Finland has also focused on wind power, with estimates suggesting that wind power could meet 12% of the country's electricity needs by the end of 2022. The country has constructed more wind turbines in the first half of 2022 than in all of 2021, adding an extra 2,000 megawatts of wind power capacity.
Finland's Economy Minister, Mika Lintilä, stated in 2022 that the country would achieve energy self-sufficiency within two years. With continued investments in nuclear and wind power, Finland is on a path to secure its energy supply and reduce its reliance on energy imports.
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Finland's response to the electricity cut
Finland remained confident in its ability to replace Russian power imports following Russia's decision to cut off electricity to the country. In 2021, Finland sourced 14% of its electricity from Russia, but by April 2022, this figure had dropped to around 10%.
Reima Päivinen, Fingrid's senior vice president of power system operations, stated that Finland could compensate for the loss of Russian electricity by increasing imports from Sweden and boosting domestic electricity production. He also noted that demand was decreasing as the weather got warmer, and more wind power generation was expected. Furthermore, a new nuclear power station, expected to open in the summer of 2022, would more than make up for the lost Russian supplies.
Jukka Leskelä, Managing Director of the Finnish Energy industry association, questioned the timing of Russia's decision, suggesting that it was linked to Finland's pending application for NATO membership. However, despite the cut-off, Finland maintained that it did not need to worry about an electricity shortage.
Finland's grid operator, Fingrid, assured that replacing Russian power imports would not be a difficult task. This sentiment was echoed by the Finnish government, which stated that the country was "doing quite well without Russian electricity." Finland intended to replace the lost imports with electricity from domestic production or imports, mainly from Sweden and the Baltic countries.
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Frequently asked questions
Yes, Russia halted electricity exports to Finland on May 14, 2022.
Russia's state-owned energy provider, RAO Nordic, a subsidiary of Inter RAO, cited payment problems as the reason for the suspension of electricity supply to Finland. However, many believe the timing of the cutoff points to Moscow's anger over Finland's decision to abandon neutrality and join NATO.
Russian electricity accounted for around 10-14% of Finland's consumption.
Finland will replace the electricity with domestic production or imports from Sweden. Finland is also increasing its wind power generation and is expected to become self-sufficient in electrical energy in 2023.
