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Russian gas deliveries to Austria halted after arbitration ruling

Russian gas deliveries to Austria halted after arbitration ruling
16 Nov 2024 19:58

VIENNA (dpa)

The Russian energy company Gazprom abruptly halted deliveries of natural gas to Austria on Saturday following a legal dispute over supply interruptions.

The stoppage was confirmed to dpa by Austrian energy company OMV spokeswoman Sylvia Shin.

However, the country has taken precautions, Austrian Chancellor Karl Nehammer wrote in a post on X on Friday evening. "Nobody will freeze in winter."

The state-controlled Gazprom announced the supply freeze for Saturday at 6 am (GMT 0500) with just over 12 hours' notice.

An arbitration tribunal this week awarded OMV € 230 million ($242 million) under the rules of the International Chamber of Commerce (ICC).

OMV wanted to offset the sum against ongoing Gazprom deliveries, it said after the ruling, while anticipating that Gazprom would react by stopping deliveries.

The Austrian gas storage facilities had therefore been well filled, said Nehammer, noting that a Russian gas stoppage was expected since the start of the war in Ukraine.

Alongside Hungary and Slovakia, Austria was one of the few countries in the EU that was still purchasing gas from Russia. In total, 80% of Austria's gas imports came from there. 

According to OMV, Austria reportedly found other suppliers and the gas storage facilities were around 90% at the beginning of the winter. This alone would be enough for Austria for around a year.

The alternative gas is to come from Norway, from Austria's own production or in the form of liquefied natural gas by ship via Italy or Germany.

Source: DPA
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