Key information
- Gazprom has stopped its natural gas deliveries to OMV in Austria.
- This decision follows an arbitration victory for OMV against Gazprom, which resulted in an award of 230 million euros.
- The Austrian Energy Minister criticizes Russia's use of energy as a weapon and emphasizes that the country is ready to deal with this situation.
OMV, the Austrian energy company, has received a notification from Gazprom Export that natural gas deliveries will cease from 6 a.m. on Saturday (November 16). This measure follows OMV's recent victory in arbitration proceedings against Gazprom, which resulted in an award of 230 million euros. In response to this decision and OMV's intention to suspend payments, Gazprom decided to halt deliveries despite a contract that extends until 2040. Austria is heavily dependent on Russian gas, with OMV being the only direct buyer and representing more than 90 percent of the supply.
Response from the Austrian government
The Austrian government says an immediate winter gas shortage is unlikely due to robust storage facilities exceeding a year's supply. This development potentially means the end of a six-decade history of Austria receiving gas from Russia, a relationship that began after Moscow blocked Austria from joining the EU during the war cold.
Criticism from the Minister of Energy
Austrian Energy Minister Leonore Gewessler criticized Gazprom's actions, saying they demonstrated Russia's lack of partnership and its continued use of energy as a weapon. She stressed that Austria was ready to deal with this situation, with emphasis on eliminating vulnerability to Russian blackmail. While acknowledging Austria's historical dependence on Russian gas, Gewessler stressed the security of its current energy supply.
Impact mondial
OMV's arbitration victory against Gazprom has already had an impact on European gas markets, pushing prices to a three-month high since the award was announced on November 13. OMV is actively seeking alternative sources of Norwegian gas supplies under contract and in global LNG markets to replace Russian supplies. Since Russia's invasion of Ukraine in 2022, EU countries have been actively working to reduce their dependence on Russian gas.
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