Vanhanen said that the decision is good both for the environment, and for European energy security.

“It is better for energy to be transported in a pipeline than on ships, trains and highways. This decision is also better from the point of view of the environment,” Vanhanen said.

Vanhanen added that he expects Estonia, which has been critical of the project, will take a calm view of the Finnish decision to approve the move.

“They see this as an environmental question, and this has not been a separate question in relations between Finland and Estonia,” Vanhanen says.

"No Linkage with Wood Tariffs"

Vanhanen also rejected claims put forward in the Russian media the gas pipeline and the issue of Russia’s export tariffs on wood.

Vanhanen and Putin discussed the issue briefly on Wednesday when they met in Helsinki during the Baltic Sea Action Summit. Vanhanen said that the wood tariff issue would be revisited later in the spring.