Austria’s OMV has seized Russian gas worth €230 million, sparking a dispute with state-owned energy giant Gazprom that has led to the suspension of gas supplies. The move, which has surprised industry insiders, comes as OMV attempts to exit its contracts with Gazprom, which run until 2040.
The seizure occurred after OMV won an arbitration case in Germany against Gazprom for €230 million in connection with irregular supplies to its German unit. Gazprom had suspended gas supplies to Austria three days later, citing the seizure as non-payment.
According to sources close to both companies, the dispute has strained relations between Austria and Russia, which has been seeking ways to reduce its economic influence in central Europe. OMV had been buying Soviet and Russian gas since 1968 but appears to be planning a complete exit from Russian gas purchases despite its contracts with Gazprom running until 2040.
Austria’s energy minister, Leonore Gewessler, said that the decision on whether to exit contracts with Gazprom lies with OMV. The federal government is providing framework conditions to make this possible.
Gazprom’s supplies to Austria have been a significant factor in the country’s dependence on Russian gas, despite other EU members switching to imports from Norway and the US.
Source: https://www.reuters.com/markets/commodities/austrias-half-century-bond-with-gazprom-ended-by-gas-seizure-sources-say-2024-11-25