Annual Review sums up the activities of the exceptional period
In many ways, 2022 was a watershed year for the National Emergency Supply Agency (NESA). Russia’s invasion of Ukraine changed Finland’s security environment and inevitably had an impact on security of supply.
The exceptional global situation heightened public awareness of the importance of security of supply, while at the same time increasing the likelihood of risks to it. The close cooperation between the NESA and its strong network proved its strength when the NESA, together with the National Emergency Supply Organisation (NESO), started to compile and monitor the effects of the war on Finland’s security of supply. This resulted in the establishment of the agency’s in-house situation office. The regularly updated situational picture it provided was used to plan special measures for the NESA and provide continuous, up-to-date information on Finland’s security of supply to the central government and political decision-makers.
In his report, CEO Janne Känkänen sums up the year’s very active and diverse operations, including several special tasks related to the war in Ukraine, as well as the agency’s own development efforts, the most significant of which was the organisational reform. Ilona Lundström, Chairperson of the NESA’s Board of Directors, says in the Annual Review that the NESA has performed its tasks commendably during a difficult year.
During the year, the Finnish Government submitted to Parliament the first ever report on security of supply, the preparation of which the NESA was actively involved in. The report provides a good basis for the future development of national preparedness and security of supply.
Moving away from raw materials and energy from the East
The turmoil in the global situation also changed the flow of energy and raw materials. The NESA was actively involved in promoting solutions and securing critical operations when alternative supply routes had to be found quickly for energy generation and industry. The situation was most critical in sectors where a significant proportion of raw materials had been imported across the eastern border. During the year, almost a third of Finland’s total energy use had to be reorganised. The NESA contributed its know-how and expertise to help replace Russian energy imports with domestic energy resources and imports from other countries. The Annual Review gives an insight into the intensive work and numerous actions undertaken by the NESA to safeguard the security of energy supply and prepare for a possible deepening of the crisis.
Strong and profound expertise emphasised
The challenging year put society as a whole to the test, extensively challenging its functions critical to security of supply and their preparedness. The NESA enhanced the scope of cybersecurity work and strengthened cooperation to ensure that critical societal functions remain operational in the event of a disruption. Security of supply in logistics and its development were also affected by the changing security environment, with ports and logistics hubs under particularly close scrutiny. In healthcare, the COVID-19 pandemic continued to cause special measures, with the NESA launching the distribution of COVID-19 tests for comprehensive school pupils and upper secondary school students to municipalities and joint municipal authorities in accordance with the instructions of the Ministry of Social Affairs and Health. The tests ordered by the NESA were available to all 300 municipalities in early 2022.
The Annual Review illustrates the diverse and extensive cooperation in the health sector and the efforts made to develop and strengthen security of supply in the sector. The year also saw the completion of a unique report on domestic pandemic vaccine production commissioned by the Ministerial Committee on Economic Policy. The changed global situation was also reflected in primary production and food supply. In autumn 2022, the NESA made a decision and launched actions to increase the emergency stockpile of food grains to cover around 8.5 months of consumption in total. The aim is to increase the level of long-term preparedness due to the uncertain market situation, which is also significantly affected by the Russian invasion of Ukraine and its impact on the international grain market.
The financial year was once again an exceptional one
The Annual Review presents the main key figures on security of supply. Like the previous year, the 2022 financial year was another exceptional one, once again demonstrating the diversity of threats and risks to security of supply. The revenue from the strategic stockpile fee was EUR 40.3 million, at the same level as the previous year but slightly below the budgeted level, partly due to the impact of the situation in Ukraine on the price of transport fuels. Consumer fuel prices rose to exceptionally high levels, which resulted in reduced consumption.
The result for the period was negative at −EUR 46.8 million (EUR 399.8 million in 2021), partly due to a write-down of EUR 112.6 million on inventories for protective equipment purchases following changes in market conditions. The NESA’s balance sheet total decreased by EUR 22.1 million from the previous year, to EUR 2.3 billion. On 5 April 2023, the Government confirmed the NESA’s financial statements for 2022.