Russia cuts gas supplies to Austria over trade dispute with Gazprom

by Andrea
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El Periódico2

Russian gas Gazprom PJSC continue sending normal gas levels a Europa via Ukraine despite the start this morning of the suspension of supply to one of his oldest partners, the austriaca OMV AG.

The Austrian energy company has confirmed to the Bloomberg and DPA agencies that Gazprom’s deliveries have been “reduced to zero“from himas 06.00as the Russian company announced yesterday.

This decision by Gazprom is a response to the announcement made on Wednesday by OMV, which declared its intention to recover the 230 million euros in damages plus interest and costs in relation to the irregular German gas supplies of Gazprom Export in 2022 after the arbitration award in its favor by the International Chamber of Commerce (ICC).

The impact of the measure for the European gas market may be limited at least for now, as Russian flows to the region as a whole continue as normal. Gazprom supplies gas to Ukraine for transit, from where it travels to Slovakia for own consumption, as well as Austria and other neighboring countries.

Gazprom has limited itself to confirming this Saturday that “the traffic flows throughout Ukraine have remained at usual levels this Saturday”, without making further comments.

Data from Slovakia’s gas transport operator Eustream shows that flows continue from Ukraine to Slovakia at the Velke Kapusany border point normally early on Saturday, as supplies from Slovakia to Austria in Baumgarten also continue.

OMV guarantees, for its part, that it is capable of meet supply obligations until 2025 and beyond through alternative sources in case Russian supplies are stopped. The company is producing from its own assets in Norway and purchasing more liquefied natural gasaccording to its executive director, Alfred Stern, this past Thursday.

Austria could accelerate the use of national inventories, which had already fallen below levels seen in the previous two years at the same time of year amid a colder weather.

Assured supply

“For this winter, the gas supply is insured“added former OMV CEO Gerhard Roiss in an interview on Austrian public radio ORF.

For her part, the president of the European Commission, Ursula von der Leyen, accused the Russian president this Saturday, Vladimir Putinto use energy again “as a weapon” by cutting off gas supplies to Austria, but warned that the EU has its full tanks and is prepared to face “blackmail”.

“Once again Putin is using energy as a weapon. He is trying to blackmail Austria and Europe by cutting off gas supplies,” Von der Leyen said in a message on her social networks, in which she showed her support for the Austrian Chancellor. Karl Nehammer.

The head of the community Executive stressed that the Twenty-seven are “prepared” to face blackmail and “ready for winter“, because “gas tanks throughout the EU are full.”

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