Finland receives diplomatic note: Russia ends historic electricity pact

Russia has formally notified Finland that it is ending two critical provisions of their bilateral treaty covering hydropower regulation on the Vuoksi River, effectively halting decades of electricity compensation.

The Finnish Ministry for Foreign Affairs received an official note confirming the cancellation of Articles 3 and 4 of the 1972 agreement. These provisions required Russia to supply Finland with replacement electricity to offset production losses at Finland’s Imatra hydropower plant, caused by water regulation at Russia’s Svetogorsk facility on the border, Yle reports.

The Russian government justified the termination by citing Finland’s refusal to purchase electricity from Russia. Finnish imports of Russian electricity had already ceased in spring 2022, following Russia’s invasion of Ukraine.

“The decision affects only the electricity compensation provisions of the treaty,” Finnish officials clarified. “The broader agreement, which regulates water levels and flow in the Vuoksi water system, remains in force.” The Vuoksi River runs from Lake Saimaa in Finland to Lake Ladoga in Russia.

Russian media had reported the government’s intention to cancel the articles earlier in November. The move underscores the continuing geopolitical and energy-related repercussions of the war in Ukraine and highlights the shifting dynamics of energy cooperation between Russia and its European neighbors.

Finland’s Ministry for Foreign Affairs confirmed receipt of the démarche but has not indicated whether it plans to pursue diplomatic measures or renegotiation regarding the compensation issue.

By Vafa Guliyeva