After unfavorable ruling, Russia stops supplying gas to Austria

OMV, Austria's largest energy supplier, accounts for about 40% of Russian gas passing through Ukraine, equivalent to 17 million cubic meters per day.

OMV, Austria's largest energy supplier, said it was prepared for a cutoff in Russian gas supplies and could supply customers by importing gas through Germany, Italy and the Netherlands. An OMV refinery near Vienna, Austria. (Source: Getty Images)

On November 16, Russia stopped supplying gas to Austria due to payment issues, but continued to supply stable volumes to Europe via Ukraine after remaining customers showed interest.

Austria said on Friday that Russia had informed it that gas supplies would be stopped following an arbitration ruling in favor of OMV, Austria's largest energy supplier, over Russia's Gazprom failing to supply its German subsidiary.

Accordingly, OMV said it had received an arbitration ruling from the International Chamber of Commerce (ICC) regarding the unstable gas supply from Gazprom Export, which was terminated in September 2022.

The company was awarded $242 million (EUR 230 million), plus interest and legal costs, and will take the necessary steps to enforce the judgment immediately.

Gazprom deliveries to OMV stopped at 6 a.m. (0500 GMT), Austria's energy regulator E-Control said on Nov. 16, adding that prices and supplies to Austrian customers remained stable.

OMV accounts for about 40% of Russian gas through Ukraine, equivalent to 17 million m3 per day.

Gazprom declined to comment on the gas supply cut to Austria, but the company said it would send 42.4 million cubic metres of gas to Europe via Ukraine on Saturday (November 16), the same volume as on any other day in recent months.

According to data compiled by Reuters , Russia has shipped about 15 billion cubic meters of gas through Ukraine by 2023, accounting for about 8% of Russia's peak gas flows to Europe via various routes in 2018 and 2019.

According to the International Energy Agency, by 2023, the Ukrainian transit route will meet 65% of gas demand in Austria and its eastern neighbors Hungary and Slovakia.

Source: https://baoquocte.vn/sau-phan-quyet-khong-co-loi-nga-dung-cung-cap-khi-dot-cho-ao-294088.html