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Russia cuts gas to Austria in payment dispute

November 17, 2024 2:00 am
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Russia cuts gas to Austria in payment dispute

(AP): Russia’s state-owned natural gas company Gazprom stopped supplies to Austria early Saturday, according to the Vienna-based utility OMV, after OMV said it would stop payments for the gas following an arbitration award.

The official cutoff of supplies before dawn Saturday came after Austrian Chancellor Karl Nehammer on Friday held a hastily called news conference to emphasize that his country has a secure supply of alternative fuel for this winter.

OMV said it would stop paying for Gazprom gas to its Austrian arm to offset a $242 million arbitration award it won from the International Chamber of Commerce over an earlier cutoff of gas to its German subsidiary.

The Austrian utility said in an email that no gas delivery was made from 6 a.m. on Saturday.

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OMV said Wednesday it has sufficient stocks to provide gas to its customers in case of a potential disruption by Gazprom and said storage in Austria was more than 90 per cent full.

“Once again Putin is using energy as a weapon,” EU Commission President Ursula von der Leyen wrote in a post on social media platform X. “He is trying to blackmail Austria & Europe by cutting gas supplies. We are prepared for this and ready for the winter.”

Russia cut off most natural gas supplies to Europe in 2022, citing disputes over payment in rubles, a move European leaders described as energy blackmail over their support for Ukraine against Russia’s invasion.

European governments had to scramble to line up alternative supplies at higher prices, much of it liquefied natural gas brought by ship from the United States and Qatar.

Austria gets the bulk of its natural gas from Russia, as much as 98 per cent in December last year, according to Energy Minister Lenore Gewessler.

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