Austrian oil and gas group OMV announced the immediate termination of its natural gas supply contract with Gazprom Export, citing multiple contractual violations. This decision marks a turning point in energy relations between Austria and Russia, interrupting cooperation initiated in 1968.
Since mid-November, Russia has stopped supplying Austria with gas, putting an end to historic energy dependence. Austria, which was still importing 90% of its gas from Russia this summer, must now redefine its sources of supply. The contract, renewed in 2006 to extend until 2040, allowed OMV to receive up to 5 terawatt hours of gas per month.
An underlying energy conflict
This termination takes place in a tense context where OMV had obtained an arbitration judgment authorizing it to claim 230 million euros in compensation for Gazprom’s past failures. This decision was followed by the complete interruption of Russian gas deliveries to Austria.
For OMV, this break is not only a commercial decision but also a strategic one. According to Alfred Stern, managing director of OMV, the group has diversified its supplies, relying on domestic and Norwegian production, as well as imports of liquefied natural gas (LNG).
A paradigm shift for Europe
The termination of this contract also reflects a broader European objective. In response to the 2022 invasion of Ukraine, the European Union pledged to reduce its dependence on Russian gas by 2027. However, despite a significant increase in purchases of American LNG, the EU has not has not yet managed to completely sever its energy ties with Moscow.
For OMV, this transition illustrates a real challenge. The diversification of its supplies is a response to energy security issues exacerbated by geopolitical tensions. This turning point also marks the end of an era for Austria, which was the first Western nation to conclude an energy agreement with the Soviet Union.
Belgium
