Russia’s state-owned gas company, Gazprom, halted natural gas supplies to Austria on Saturday following a payment dispute with Vienna-based utility OMV. The cutoff came after OMV decided to withhold payments to Gazprom’s Austrian subsidiary, citing a 230 million-euro ($242 million) arbitration award it had won over a prior gas supply dispute involving its German arm.
Austrian Chancellor Karl Nehammer assured the public on Friday that the country has sufficient alternative energy supplies to meet winter demand. OMV confirmed that no gas deliveries had been received from Gazprom since 6 a.m. Saturday, but emphasized its preparedness for such disruptions. Austrian gas storage levels are reportedly over 90%, ensuring continued supply for customers.
The latest halt follows Russia’s broader reduction of natural gas deliveries to Europe in 2022, attributed to disputes over payment in rubles. European leaders labeled the move as energy blackmail in retaliation for their support of Ukraine amid Russia’s invasion. Since then, European countries have worked to secure alternative energy sources, often at higher costs, including liquefied natural gas from the U.S. and Qatar.
Austria has been heavily reliant on Russian natural gas, with 98% of its supplies originating from Russia as recently as December 2023.
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