Inter RAO, Russia's largest electricity company, has suspended electricity supply to Finland, according to news reports on Saturday.
Inter RAO's Finnish subsidiary, RAO Nordic Oy, said in a statement on Friday that it is "forced to suspend the electricity import" starting from May 14.
"Unfortunately, we are forced to note that for the volumes which have been sold on Nord Pool exchange since the 6th of May funds have not yet been credited to our bank account," it said in a statement.
"This situation is exceptional and happened for the first time in over 20 years of our trading history," it added.
Finnish national electricity transmission grid operator Fingrid Oyj also said in a statement on Friday that RAO Nordic Oy will suspend imports of electricity to Finland at 1:00 a.m. local time on Saturday.
"According to RAO Nordic, further direct or bilateral sales of electricity imported from Russia will be halted until further notice due to problems in receiving payments for electricity sold on the market," Fingrid said.
"The lack of electricity import from Russia will be compensated by importing more electricity from Sweden and by generating more electricity in Finland," Fingrid Senior Vice President of Power System Operations Reima Päivinen said.
Finland is expected to become self-sufficient in electrical energy in 2023, as its wind power generation is increasing every year, according to Fingrid.
An additional 2,000 megawatts of new wind power is expected to come online in Finland this year, it added.
Imported electricity from Russia has covered approximately 10% of Finland’s total consumption, according to Fingrid.