Austria braces as OMV wins 230m euros in Gazprom dispute
The Austrian corporation OMV announced on Friday that it will suspend gas supplies from Russia following its victory in arbitration proceedings against Gazprom. OMV was awarded 230 million euros in compensation.
15 November 2024 19:47
The Russian energy giant Gazprom informed OMV that from Saturday, November 16, it would suspend gas supplies to Austria. The Russians made this decision shortly after OMV won 230 million euros in compensation for disruptions in gas supplies that occurred in the summer of 2022. Full supplies were restored in September 2022. Russian gas was transported to Austria via pipelines under a long-term agreement valid until 2040.
The International Chamber of Commerce's arbitration ruled on Wednesday, November 13, that compensation was due to OMV for irregular gas supplies to Austria. The Austrian corporation intends to deduct the awarded amount, nearly a quarter of a billion euros, from future invoices for Gazprom. Austria, as the penultimate EU state, loses oil supplies from Russia. Only Hungary remains on Gazprom's list.
Gazprom turned off the taps. Austria was prepared
OMV assures that despite the Russian suspension of supplies, it is ready to meet its customers' demands. The company has secured alternative gas supplies from Norway and European LNG terminals, enabling it to continue fulfilling its obligations.
In response to Gazprom's announcement, gas prices on the European market temporarily increased. On the Dutch TTF exchange, December contracts rose from 46 to nearly 47.3 euros per MWh (approximately 69 dollars per MWh), and January contracts from 46.2 to 47.6 euros per MWh (approximately 70 dollars per MWh). However, after a short period, the quotations returned to previous levels.
