Russia cuts electricity to Finland

Russia will suspend electricity supplies to Finland this weekend, a supplier said on Friday as tensions rise over Helsinki's NATO bid amid Moscow's military campaign in Ukraine.

"We are forced to suspend the electricity import starting from May 14," said RAO Nordic, a subsidiary of Russian state energy holding Inter RAO. "RAO Nordic is not able to make payments for the imported electricity from Russia."

Finland's President Sauli Niinisto and Prime Minister Sanna Marin on Thursday said Finland would apply to join the Western defense alliance NATO "without delay", prompting Russia to vow a response.

The majority of gas used in Finland comes from Russia but gas only accounts for some 5% of the country's annual energy consumption. read more

However, losing most of the gas supply would mean industry giants like Neste and Metsa, including other companies in the forestry, chemical and food industries would need to find alternative energy sources or adapt their production.

On May 5, the Finnish government said it was prepared for the possibility of its eastern neighbor cutting off gas delivery in late May as a response to Finland's refusal to abide by Russian demands for gas payments to be made in roubles.

With direct pipeline connections with Russia, Finland and the Baltics are more reliant on Russian gas than other European countries. If Russian gas supply is reduced or cut, Finland, Estonia, Latvia and Lithuania might have to curtail demand, European gas operator network ENTSOG said in their summer outlook in April.

[With information from Daily Mail and Reuters]