Russia Punishes Austria By Cutting Off Gas Supply

11/16/2024 9:07:26 AM

(MENAFN- Kuwait News Agency (KUNA)) VIENNA, Nov 16 (KUNA) -- The Austrian national oil and gas group (OMV) announced on Saturday that it has received a notice from the Russian gas company (Gazprom) stating that it will completely cut off Russian gas supplies to Austria.
The amount of Russian gas supplied to Austria was 178 megawatt-hours per day.
Austrian Chancellor Karl Nehammer, who heads the current outgoing government, commented on this decision in a statement to the Austrian Broadcasting Corporation (ORF), saying: "We will not succumb to blackmail, neither from Russia nor from President Putin himself. This decision did not surprise us, as we were prepared for it, and we have taken all necessary precautions to confront it."
He added, "I reassure the Austrians not to worry about this decision, as we have filled our gas reserves to more than 93%, and therefore, they will not suffer from gas shortages or price hikes."
For his part, the CEO of OMV, Alfred Stern, stated, "The company has already prepared for such a scenario three years ago, noting that alternative gas will flow from Norway and Austria's own production in the form of liquefied natural gas. Therefore, the impact of the Russian gas cut is expected to be very limited."
However, Gerhard Roiss, the former CEO of OMV, told Austrian radio this morning that the Austrian government must act in response to the potential rise in gas prices, urging urgent measures to secure the country's long-term gas needs and establish a mechanism to prevent price fluctuations on the gas market.
The dispute between Russia and Austria stems from a legal case in which OMV won against Gazprom in the International Chamber of Commerce. The ruling stipulates that Gazprom must pay OMV (Euros 230 million) in compensation for damages and interest owed to it for failing to deliver agreed-upon gas quantities to Austria.
Gazprom, however, does not recognize the ruling and considers it unjust and biased, citing the sanctions imposed by the European Union on Russia due to the ongoing war in Ukraine.
In response to Gazprom's rejection of the ruling, OMV ceased paying its obligations to the Russian company, which, in turn, swiftly retaliated by cutting off gas supplies to Austria ahead of schedule.
It appears that the Russian gas cut to Austria will not impact the country's gas needs, according to both the Austrian Chancellor and the CEO of OMV. A member of the Austrian Energy Regulator (E-Control) confirmed that Austria is no longer dependent on Russia for its gas supply and has found alternative ways to secure this energy source, even before the announcement of the Russian gas cut. (end)
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