Gazprom, Russia’s state-owned energy giant, has ceased gas supplies to Austria’s primary energy provider, OMV, following a warning issued by Moscow that flows would be interrupted. This development arrives after an arbitration ruling in favour of OMV regarding Gazprom’s failure to fulfil delivery commitments to its German subsidiary.
On Friday, Austria confirmed it had received notification from Russian authorities that gas supplies would be halted as of Saturday, 16 November. OMV, Austria’s largest energy supplier, has been attempting to recover damages amounting to €230 million from Gazprom after a recent arbitration decision.
The Austrian energy regulator, E-Control, reported that Gazprom’s deliveries to OMV ceased at 6:00 am local time (7:00 am Kyiv time) on Saturday. However, E-Control assured Austrian consumers that gas prices and supplies within the country would remain stable despite the cessation of Russian deliveries.
In its response, Gazprom announced it would be dispatching 42.4 million cubic metres of gas to Europe through Ukraine on Saturday, consistent with Friday’s levels. Supply flows into Slovakia from Ukraine have maintained stability, but volumes designated for Austria were approximately 16% lower than average figures for this month, according to Eustream, Slovakia’s gas transmission operator.
OMV’s usual intake comprises around 40% of Russian gas transiting through Ukraine, equivalent to roughly 17 million cubic metres per day. Austria and other European countries have long relied on this Soviet-era pipeline route, the Urengoy-Pomary-Uzhhorod line, which supplies gas from northern Siberia through Ukraine to European markets.
This route, however, faces impending closure. Kyiv has indicated it does not intend to extend its existing five-year transit contract with Moscow, set to expire at the end of the year. Consequently, significant volumes of Russian gas will only be supplied to Hungary and Slovakia once Austria is removed as a transit destination. Hungary currently receives Russian gas through a pipeline system primarily routed via Turkey.
Russia’s gas exports to Europe via Ukraine amounted to approximately 15 billion cubic metres in 2023, representing around 8% of Gazprom’s peak volumes transported to Europe in 2018-2019. According to the International Energy Agency, the Ukrainian transit route met approximately 65% of gas demand for Austria and neighbouring countries Hungary and Slovakia in 2023.
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