Enhancing Energy Security: Finland's Legislative Response to Russian LNG Imports

Russian LNG has been imported to Europe in record amounts in recent years, despite the EU imposing sanctions on Russian gas and oil exports due to the war in Ukraine. In Finland, the state-owned company Gasum imported Russian LNG until the summer of 2024, when EU sanctions came into effect.

Introduction

Finland has drafted a government proposal for a law that would temporarily ban the import of natural gas and liquefied natural gas (LNG) from Russia and Belarus (Project number TEM036:00/2024 and Case number VN/14219/2024) (“Government Proposal”). This Government Proposal was made in response to Russia's attack on Ukraine and to ensure Finland's energy security. The law aims to ban the import of Russian natural gas and LNG until 2035, which would improve Finland's energy security and reduce dependence on Russian energy. The restrictions would apply to the supply of natural gas and LNG to Finland's gas network and LNG terminals if the gas comes directly or indirectly from Russia or Belarus.

Background

The Government's Proposal is based on the fact that the import of Russian gas to Finland has already been largely blocked: Russia cut off pipeline gas supplies in May 2022, and the rules of the floating LNG terminal prohibit the import of Russian gas. No Russian gas comes through the Balticconnector, and Estonia, Latvia, Lithuania, and Poland have already implemented the ban. However, about 15% of the gas in the European Union is still of Russian origin (6% LNG and 9% pipeline gas). Small amounts of Russian LNG have been imported to the terminals in Pori and Tornio, but this ended in July 2024 with the EU sanctions. The import of pipeline gas is prohibited at the Imatra point and the Inkoo LNG terminal based on occupational and operational safety legislation and the conditions approved by the Energy Authority. The consultation round for the draft Government Proposal took place from 23 December 2024, to 3 February 2025, and the proposal is currently in the preparation phase. Its presentation to the Finnish Parliament is expected in week 21 of 2025. However, at this stage, there is no confirmed timeline for approval, nor assurance of its final outcome. The next step in the process is parliamentary review, where a decision will be made on whether to approve or reject the proposal.

Conclusion 

To address the ongoing energy security challenges and reduce dependency on Russian energy sources, Finland and the EU are taking significant steps to restrict the import of Russian LNG. Restricting the import of Russian LNG is part of a broader effort to improve the energy security of Finland and the EU. Although the import of LNG has been partially allowed because it helps the EU to get rid of Russian pipeline gas, the long-term goal is to reduce the import of all Russian gas.