Russian attack on Ukraine
Russia launched an attack on Ukraine on 24 February 2022. Finland has strongly condemned Russia’s military actions in Ukraine and supports Ukraine’s independence, sovereignty, self-determination and territorial integrity.
The Government has continuously monitored the situation and developments in Ukraine. The Ministry of Economic Affairs and Employment has monitored the situation from the perspective of its areas of responsibility:
- energy
- security of supply
- impacts on Finnish companies (exports and internationalisation)
- labour migration and integration
- European Neighbourhood Instrument Cross-Border Cooperation programmes on the border between Finland and Russia
More information:
- Government
- Ministry of Foreign Affairs
- Current information on EU measures and sanctions
- People receiving temporary protection have the right to work in Finland
Energy sources and energy imports from Russia
Russia attacked Ukraine in February 2022, but it had already started the energy war against Europe by restricting the supply of natural gas in autumn 2021. Restricting energy is a tool with which Russia attempts to exert influence in other countries. This measures the resilience of societies. Finland has adapted to the new situation fully and quickly. The transformation is based on the use of clean energy and exceptionally strong preparedness.
Approximately one third of the energy used in Finland has been imported from Russia. After the attack in February 2022, energy imports from Russia began to fall sharply and they are now close to nil. Due to the sanctions imposed by the EU and Finland’s own measures, imports of wood fuels, pipeline gas, electricity, oil and coal have ceased entirely.
Renewable energy accounts for almost half of all energy used in Finland and 90 per cent of electricity is fossil-free. Finland is about to introduce a large amount of emission-free power plant capacity. In 2022, more than 2,400 MW of new wind power was deployed and about 1,000 MW will be introduced this year. In addition, the commercial operation of the Olkiluoto 3 nuclear power plant with a capacity of 1,600 MW will begin soon.
Broad-based preparedness and consistent measures have enabled Finland to free itself from Russian energy rapidly. A key acquisition to ensure Finland’s energy security is an LNG (liquefied natural gas) terminal ship that was leased last year, transported to Ingå port and connected to the Finnish gas network to secure natural gas supply. The terminal ship will be leased for 10 years. It can also supply gas to Estonia and other Baltic states through the Balticconnector pipeline.
The share of gas as an energy source in Finland is below five per cent, which is small compared to many other European countries. Gas is mainly used in industry and 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.
Finland’s transition to emission-free energy sources has also continued. Finland has reduced the use of natural gas by a record 50 per cent over the past year. The Finnish economy is also much less dependent on oil products than many of its peers. The use of coal for energy continues to decrease and it will be prohibited by law from 1 May 2029.
Electricity has been mainly imported to Finland from the Nordic electricity market and earlier also from Russia. In recent years, electricity imports have accounted for approximately one fifth of total supply. However, self-sufficiency in electricity, calculated on an annual basis, will be achieved in the near future with the help of additional nuclear power and wind power. Finland’s transmission network connections to Sweden and the Nordic electricity market are strong and under continuous development. These networks will continue to be of primary importance to the security of supply. The import of electricity from Russia came to an end on 14 May 2022.
In winter 2022–2023, the Down a Degree campaign, which encourages consumers to save electricity, and a voluntary demand response system helped ensure the adequacy of electricity. With their help, sufficient electricity has been available in the winter and the threat of electricity shortage has been thwarted. The website on the 72-hour concept provides households with instructions on how to prepare for long power cuts.
In September–December 2022, Finnish people saved 7–10 per cent of electricity compared to the temperature-adjusted monthly consumption in 2021. The same trend has continued in January–February 2023, with electricity consumption five per cent lower than at the same time a year ago.
A new voluntary demand response system developed by grid operator Fingrid for companies has resulted in more than 500 MW of flexibility in the electricity system. Uranium fuel used in Fortum’s 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. Fortum has started to investigate other options to procure nuclear fuels.
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 of normal consumption.
Finland is well prepared for different kinds of crises and incidents. The Government and the authorities monitor the current situation and assess 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 is largely based on domestic raw materials.
The work to ensure security of supply has been carried out for decades. Awareness of the current situation of 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.
Inquiries:
National Emergency Supply Agency: Topical questions and answers about security of supply (updated on 9 September 2022)
Situation picture of security of supply on 15 February 2023 (in Finnish)
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:
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 16.5.2022: Working in Finland brochure combats exploitation in 24 languages – Seasonal workers’ advisory service operates again this summer
- 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.