On Saturday, Russia will cease natural gas exports to Finland, according to Gasum, a Finnish state-owned energy wholesaler.

Gazprom, the state-owned energy giant of Russia, warned Gasum on Friday that flows would be terminated.

The Finnish corporation stated that the Russian action would not interrupt supply.

The Saturday, 4:00 a.m. GMT gas cutoff is a result of Finland and Sweden applying to join the NATO military alliance in response to security concerns prompted by the Russian invasion of Ukraine.

"It is extremely regrettable that natural gas supplies under our supply contract will now be halted," said Mika Wiljanen, chief executive officer of Gasum.

"However, we have been carefully preparing for this situation, and assuming there are no disruptions in the gas transmission network, we will be able to provide gas to all of our customers in the coming months," he said.

Since Moscow requested that foreign purchasers begin paying for supplies in roubles, and Poland and Bulgaria refused to comply, payments for Russian gas have become an issue.

Gazprom Export sought in April that future payments under the supply contract with Finland be made in roubles as opposed to euros, but Gasum rejected the demand and said on Tuesday that it would refer the matter to arbitration.

Gasum stated that it will continue to deliver natural gas to Finnish consumers via the Balticconnector pipeline, which connects Finland and Estonia.

Finland announced earlier on Friday a 10-year agreement with Excelerate Energy to lease a floating storage and delivery vessel to supply the region with liquefied natural gas.

The majority of gas used in Finland is imported from Russia, however this fossil fuel only accounts for five to eight percent of Finland's yearly energy consumption.

"Long-reaching effects"

Gazprom did not immediately comment on the suspension of gas supplies to Finland, but Kremlin spokesman Dmitry Peskov stated that while Moscow lacked specific details of Gazprom's supply contracts, "obviously nothing will be supplied for free to anyone."

Sunday, RAO Nordic, a subsidiary of the Russian state-owned energy company Inter RAO, turned off the electrical supply to Fingrid, the Finnish electricity grid operator, alleging payment issues. Fingrid stated that the reduction in power supply would be offset by an increase in domestic production and imports from Sweden.

Thursday, Finland and Sweden abandoned their long-held neutrality principles and formally applied to join the North Atlantic Treaty Organization, over Turkey's opposition.

Moscow has regularly warned Finland, which shares a 1,340-kilometer (830-mile) border with Russia, of "serious repercussions" if it joins the military alliance.

Friday, Russian Defense Minister Sergei Shoigu declared that Moscow would construct 12 new military units and divisions in the country's western area, citing the potential expansion of NATO and other rising military threats.