Russia’s state-owned natural gas company Gazprom is turning off its supply to Austria after Austria said it wouldn’t pay anymore until it had received 230 million euros worth of gas, following an arbitration ruling with Austria's energy company OMV who is owed this sum from a dispute.
Russia’s state-owned energy company Gazprom will halt natural gas deliveries to Austria’s OMV utility starting early Saturday, according to Austrian Chancellor Karl Nehammer. He says that Austria’s underground gas storage is full and the country has secured alternative, non-Russian supplies.
The cutoff follows OMV’s decision to stop payments to Gazprom for gas supplied to its Austrian division. This decision was made to offset a €230 million ($242 million) arbitration award OMV won after Gazprom cut gas deliveries to its German subsidiary.
Chancellor Nehammer, speaking at a press conference Friday, emphasized that Austria’s energy security is intact.
“No one will freeze this winter, no home will be cold. Our gas storage facilities are full, and we have sufficient capacity to obtain gas from other regions. We cannot be blackmailed,” he declared.
OMV announced the supply halt via a statement on the Central European Gas Hub website but declined further comment. Gazprom also has not responded.
Russia significantly reduced gas supplies to Europe in 2022, citing payment disputes. Gazprom had asked for payments to be in rubles. European leaders labeled this move as energy blackmail due to their support for Ukraine amidst Russia’s invasion. The supply cuts led to skyrocketing gas prices and record-high inflation, which peaked in October 2022 but has since eased.
European countries scrambled to secure alternative supplies, including liquefied natural gas (LNG) from the U.S. and Qatar. However, Austria, Slovakia, and Hungary continue to receive Russian gas through a pipeline running via Ukraine. Ukraine has announced it will cease gas transit after January 1, 2025, leaving these countries to seek new suppliers.
Austria’s dependency on Russian gas remains high, accounting for as much as 98% of imports in December 2023, according to Energy Minister Leonore Gewessler. While the European Union has largely ended imports of Russian oil, it has not directly sanctioned Russian gas. The EU aims to phase out Russian gas imports by 2027 as part of its nonbinding targets.
Austria has a long history of reliance on Russian gas, dating back to 1968 when it became the first Western European country to import gas from the Soviet Union. In 2018, a deal extending gas supplies until 2040 was signed during Russian President Vladimir Putin’s visit to Austria. The contract obligates OMV to pay for the gas whether it is delivered or not.
Minister Gewessler has initiated a commission to review the circumstances surrounding the contract and explore legal options for termination.
Australia put on a defensive masterclass as they beat Türkiye 2-0 in Vancouver in the final opening Group D match....
U.S. and Pakistani leaders forecast a Sunday signing of a long-elusive framework agreement to end fighting between the United States and Iran, but Teh...
Romania's centrist President Nicușor Dan on Sunday designated Adrian Veștea, a member of the liberal party, as prime minister, after independent can...
The International Monetary Fund (IMF) has urged Georgia to implement reforms to tackle youth unemployment. Nearly 30 per cent of people aged 15-24 ar...
North Korea said on Sunday, 14 June, that denuclearisation is a matter that is irreversibly terminated, in a condemnation of recent nuclear deterren...
North Korean leader Kim Jong Un has reaffirmed his country's close ties with Russia, sending a congratulatory message to President Vladimir Putin on Russia’s National Day and expressing full support for Moscow’s domestic and foreign policies, according to state news agency KCNA.
Russia has once again offered warm words to Tbilisi, with Foreign Ministry spokeswoman Maria Zakharova praising Georgia's efforts to safeguard its sovereignty and saying Moscow is ready to deepen ties.
The ambassadors of France, Germany and Britain have attended a meeting at Russia’s Foreign Ministry, raising questions about a possible ceasefire between Moscow and Kyiv, or at least the resumption of peace talks.
Chinese Vice Premier Zhang Guoqing will attend a video conference hosted by French President Emmanuel Macron on Thursday (12 June) to discuss global economic imbalances, marking a rare high-level engagement between China and G7 nations ahead of next week's summit in France.
Pakistan has warned that any attempt by India to block or significantly reduce river flows under the Indus Waters Treaty could have “far-reaching consequences”, after India's water minister said New Delhi was working to ensure that “not a single drop” of water reaches Pakistan in the coming years.
SpaceX made a historic entrance into the Nasdaq on Friday, surging over 20% in its first day of trading and lifting its valuation to more than $2 trillion. Investors flocked to the world’s largest IPO, betting on Elon Musk’s sprawling empire spanning rockets, AI and beyond.
Armenia has every right to choose Europe. But Europe’s support for Armenia’s direction should not become automatic approval of its political process.
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
Japan’s birth rate and fertility levels have fallen to their lowest levels on record, highlighting the country’s worsening demographic crisis as fewer people marry and have children.
Romania's centrist President Nicușor Dan on Sunday designated Adrian Veștea, a member of the liberal party, as prime minister, after independent candidate Eugen Tomac withdrew.
North Korea said on Sunday, 14 June, that denuclearisation is a matter that is irreversibly terminated, in a condemnation of recent nuclear deterrence talks between the U.S. and South Korea.
British Prime Minister Sir Keir Starmer has pledged to publish the UK government's long-awaited Defence Investment Plan ahead of next month's NATO summit in Ankara, following growing pressure over the UK's military spending commitments.
British Prime Minister Sir Keir Starmer says British armed forces intercepted a Russian shadow fleet oil tanker early on Sunday, as it attempted to pass through the English Channel.
Hundreds of protesters have torn down fences surrounding a planned luxury development site in Albania, as public anger continues to mount over construction in environmentally sensitive areas.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment