VIENNA — Austria’s primary natural gas provider, Gazprom, has halted its gas supplies to the country as of early Saturday morning, according to OMV, the Vienna-based energy utility. This decision follows an announcement that OMV would cease payments to Gazprom in response to a ruling from an arbitration panel.
The timing of the cutoff coincided with Austrian Chancellor Karl Nehammer’s urgent news conference on Friday, where he assured the public that necessary alternative fuel supplies are secure for the upcoming winter season.
OMV confirmed in an email that no gas deliveries occurred as of 6 a.m. on Saturday. The utility revealed plans to withhold payment for Gazprom gas to balance a 230 million-euro (approximately $242 million) arbitration award they received from the International Chamber of Commerce, which was linked to an earlier disruption of gas supply to its German division.
Earlier in the week, OMV had reassured its customers that it possesses enough gas reserves to manage any interruptions from Gazprom. The company reported that storage levels in Austria remain robust, exceeding 90%.
The backdrop to this supply disruption dates back to 2022 when Russia significantly reduced natural gas shipments to Europe. This reduction was attributed to payment disputes involving Russian rubles, which European officials have labeled as a tactic of energy blackmail in retaliation for their support of Ukraine amid the ongoing conflict with Russia.
As a result, European nations have had to act swiftly to secure alternative energy sources, often at a higher cost, with much of the supply now sourced as liquefied natural gas transported by ship from countries like the United States and Qatar.
According to Energy Minister Leonore Gewessler, Austria relied heavily on Russian gas, depending on it for as much as 98% of its needs as recently as December of last year.
