Russia's state-owned natural gas company Gazprom ceased supplies to Austria early Saturday, as confirmed by the Vienna-based utility OMV. This action followed OMV's decision to halt payments for the gas in response to an arbitration award. The official termination of supplies occurred before dawn on Saturday, after Austrian Chancellor Karl Nehammer held a press conference to assure the public of the country's secure alternative fuel supply for the winter.
OMV announced that it would no longer pay for Gazprom gas to its Austrian arm, citing a 230 million-euro ($242 million) arbitration award it received from the International Chamber of Commerce related to a previous gas cutoff to its German subsidiary. The utility stated via email that no gas deliveries were made starting at 6 a.m. on Saturday.
Earlier in the week, OMV had reassured customers that it had ample gas stocks to mitigate any potential disruptions caused by Gazprom. The company reported that gas storage in Austria was above 90% capacity. This move comes amidst ongoing tensions between Russia and Europe over gas payments, with Russia cutting off most natural gas supplies to the continent in 2022 due to disputes over payment in rubles.
European leaders have criticized Russia's actions, labeling them as energy blackmail in response to their support for Ukraine against Russia's invasion. In the wake of the supply cutoff, European governments have scrambled to secure alternative gas sources, albeit at higher prices. Much of the replacement gas has been in the form of liquefied natural gas imported from the U.S. and Qatar.
Austria heavily relies on Russian gas, with as much as 98% of its natural gas supply coming from Russia in December of last year, according to Energy Minister Lenore Gewessler.
