Russian attack on Ukraine

Energy sources and energy imports from Russia

Finland has a variety of energy sources. Renewable forms of energy production have already surpassed the use of fossil fuels. Although statistics show that large amounts of energy have been imported to Finland from Russia, in fact Finland has made an effort to diversify its energy sources for quite some time.

Finland has imported oil, gas, coal, wood chips and uranium fuel used in nuclear power plants from Russia. Substituting for Russian energy imports has been difficult only during certain peak consumption times. Finland is prepared for these situations with emergency and compulsory stockpiles of oil products, among other things. 

After Russia attacked Ukraine in February 2022, the import of wood chips, pipeline gas, coal and electricity has been completely suspended. The import of Russian crude oil has also been replaced by imports from other countries. The use of coal for energy continues to decrease and it will be prohibited by law from 1 May 2029.

The share of gas as an energy source in Finland is five per cent, which is small compared to many other European countries. Gas is mainly used in industry and in district heat production, not in building-specific heating as in continental Europe. The import of Russian pipeline gas to Finland ended on 21 May 2022.

The National Emergency Supply Agency (NESA) is prepared to meet the needs of protected gas customers, i.e. households that have joined the distribution network. 
The Balticconnector gas pipeline between Finland and Estonia will make it possible to import gas from the Baltic states. Gas will also be supplied to the terminals in Tornio and Pori as liquefied natural gas (LNG), and to the terminal in Hamina, which will be completed this autumn.

In order to cover the needs of the industry and those related to security of supply, Gasgrid Finland signed a 10-year contract on the lease of the LNG terminal ship Exemplar with the American Excelerate Energy Inc on 20 May 2022. The intention is to have the terminal ship ready for use next winter.

Electricity has been mainly imported to Finland from the Nordic electricity market and Russia. In recent years, electricity imports have accounted for approximately one fifth of total supply. However, self-sufficiency in electricity will be achieved in near future, because commercial production at the Olkiluoto 3 power plant unit will start and construction of wind power will continue at a rapid rate over the next few years. The import of electricity from Russia ceased on 14 May 2022. 

Uranium fuel used in nuclear power plants in Loviisa is imported from Russia. There are other producers of uranium fuel in the global market but before such imports can start, the fuel producers must obtain a licence from the Radiation and Nuclear Safety Authority.

Security of energy supply

Due to its northern location and long distances, Finland needs a great deal of energy for heating and transport. In addition, Finnish industry requires plenty of energy. Finland’s energy supply is based on decentralised energy production, diverse energy sources and a reliable transmission and distribution system.

Obligatory stockpiling of imported fuels, security stockpiling of peat and international agreements to secure fuel are key to safeguarding the security of energy supply. Compulsory stockpiling of imported fuels applies to coal, crude oil and other feeds used in oil refining, key oil products and natural gas.

The National Emergency Supply Agency maintains stockpiles of imported fuels so that Finland has, on average, reserves of imported fuels for five months’ normal consumption.

Fennovoima

Fennovoima Oy’s Hanhikivi 1 nuclear power plant project has been cancelled. On 24 May 2022, the company submitted a notification to the Ministry of Economic Affairs and Employment to withdraw its construction licence application for a nuclear power plant in Pyhäjoki. 

The State of Finland has not been involved in the Pyhäjoki power plant project. The project has been carried out by private bodies.   

Building a new power plant at the Pyhäjoki plant site would require that the entire permit process begin from the very start.

Finland is well prepared for different kinds of crises and incidents. The Government and the authorities are monitoring the current situation and assessing how it will evolve. The National Emergency Supply Agency and businesses critical for security of supply monitor the situation regularly and systematically.

The basic level of Finland’s security of supply is good and the Russian attack on Ukraine has no immediate impact on security of supply. Finland is less dependent on energy produced in Russia than many countries in Central and Southern Europe. Finland’s food supply largely comes from domestic raw materials.

Work to safeguard security of supply has been carried out for decades. Awareness of the current situation regarding security of supply provides a good basis for monitoring, communicating and cooperating in a rapidly changing situation. This makes it possible to react quickly, if necessary.

More information:

National Emergency Supply Agency 1 March 2022: Topical questions and answers about security of supply

The European Union has strongly condemned Russia’s attack and has imposed severe sanctions against Russia. In addition to the EU, many countries, such as the United States, have imposed sanctions on Russia. The range of measures includes export and import restrictions, financial sanctions, freezing of assets of persons subject to sanctions, and travel and transit restrictions.

The development of the situation and the effects of sanctions are monitored regularly and systematically by ministries and in cooperation with business and industry.

The sanctions have a particular impact on Finnish companies engaged in trade with Russia. About 2,200 Finnish companies export to Russia. According to the Finnish Customs, the sanctions imposed so far will affect about one quarter of these companies, or 500, in particular. The sanctions also affect companies that are not involved in direct trade with Russia. For example, the closure of the EU airspace from Russian air traffic and the resulting closure of the Russian airspace from European air traffic make air freight traffic more difficult.

Extensive sanctions imposed on the financial sector will slow payment transactions between Finland and Russia. Finnish companies cannot engage in transactions with the Russian banks whose funds have been frozen. The exclusion of seven Russian banks from the SWIFT payment system also prevents or slows money transfers of Finnish companies.

Companies are responsible for evaluating the effects of the sanctions on their operations.

More information:

• Ministry for Foreign Affairs
• Business Finland: Information on the situation in Ukraine and Russia 
• Finnish Customs: Russian attack on Ukraine
• People applying for temporary protection have the right to work in Finland

Millions of Ukrainians have had to leave their homeland because of the war started by Russia. Tens of thousands of people who fled the war have also come to Finland to seek temporary protection or asylum.

Finland has decided that all those fleeing the war in Ukraine can apply for a residence permit on the basis of temporary protection. Those granted temporary protection have similar rights to those of asylum seekers and they are entitled to reception services. However, those who have fled Ukraine have the right to work and study in Finland as soon as they apply for temporary protection. They may also work as a private trader.

Those fleeing the war from Ukraine have various skills and many people have good education. Those granted temporary protection can register at TE Offices as unemployed jobseekers and participate in various employment-promoting services. Even though many of those coming from Ukraine have traumatic experiences, work can support their integration and coping in general. 

Ukrainians do not need to apply for protection immediately upon arrival in the EU, however, because they can enter the Schengen area with a biometric passport and move freely for three months. However, those fleeing the war from Ukraine are advised to contact the police or border authorities and apply for temporary protection.  

More information:

• Finnish Immigration Service: Frequently asked questions regarding the situation in Ukraine
• People receiving temporary protection have the right to work in Finland
• Video instructions on working in Finland (YouTube)
• Press release 23.5.2022: An updated Welcome to Finland guide has been published – a related brochure also available in Ukrainian and Vietnamese 
  • Press release in Ukrainian
• Press release 16.5.2022: Working in Finland brochure combats exploitation in 24 languages – Seasonal workers’ advisory service operates again this summer
  • Press release in Ukrainian
• Video by the TE Office informing Ukrainians about the TE services available

Three EU cross-border cooperation programmes (Kolarctic, Karelia and South-East Finland-Russia) have taken place at the Finnish-Russian border during the programming period of 2014–2020. Three similar programmes were also under preparation for the programming period of 2021–2027. The European Regional Development Fund (ERDF), the European Neighbourhood Instrument (ENI) and the EU’s Neighbourhood, Development and International Cooperation Instrument (NDICI) co-finance cross-border cooperation programmes.

Russia’s attack on Ukraine has changed the operating environment of the EU’s cross-border cooperation programmes on the Finnish-Russian border. The European Commission has frozen the funding agreements of cross-border cooperation programmes in 2014−2020, which halts the implementation of the programmes with Russia. The preparations for the 2021−2027 programming period will cease.