Agencies
Russia’s state-owned natural gas company Gazprom halted 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.
Yet, the flows to other European countries were reportedly continuing on Saturday and Sunday via Ukraine after remaining buyers asked for more gas.
Russia, which before the Ukraine war was the biggest single supplier of natural gas to Europe, has lost almost all of its European customers as the EU tries to reduce its dependence and after the Nord Stream pipeline to Germany was blown up in 2022.
Now one of the last main Russian gas routes to Europe – the Soviet-era Urengoy-Pomary-Uzhgorod pipeline via Ukraine – is due to shut at the end of this year, as Kyiv does not want to extend a five-year transit agreement, which brings northern Siberian gas to Slovakia, Czechia and Austria.
Austria said on Friday that Moscow had informed it that the gas would be shut off following an arbitration award to OMV, Austria’s biggest energy supplier, over unfulfilled supplies to its German unit by Russia’s Gazprom.
On Saturday, Austria’s energy regulator E-Control said Gazprom’s deliveries to OMV had stopped at 6 a.m. (5 a.m. GMT), adding that prices and supplies to Austrian customers were steady.
OMV is seeking to recover the 230 million euro ($242 million) damages, awarded during arbitration, from Gazprom by offsetting the claim against invoices for deliveries to Austria – essentially stopping some payments for gas supplied via Ukraine.
Gazprom declined to comment on the suspension of flows to Austria, but the Russian company said it would send 42.4 million cubic metres (mcm) of gas to Europe via Ukraine on Saturday, the same volume as on Friday and during every other day in recent months.
Slovak state-owned firm SPP said it was still receiving gas from Russia and added others were buying more.
“The situation when a large consumer stopped taking gas from the east, but the same volume flows through the territory of Ukraine, shows that there is still great interest in this gas in Europe,” SPP said in a statement, without naming the other buyers.
OMV usually accounts for around 40% of Russian gas flows via Ukraine, or some 17 mcm per day.
Austrian grid operator AGGM said it was not currently substituting imports from Germany or Italy. Austria said earlier it had plentiful stocks to cover the shortfall.
German Chancellor Olaf Scholz spoke to Russian President Vladimir Putin on Friday for the first time in nearly two years, as European leaders wait to hear Donald Trump’s ideas on ending the biggest land war in Europe since World War II.
According to the Kremlin, Putin told Scholz that Russia had always fulfilled its contractual obligations for energy supplies and was “ready for mutually beneficial cooperation if the German side shows interest in this.” Soviet and post-Soviet leaders spent half a century from the discovery of major Siberian gas deposits in the post-WW2 years building up an energy business that linked the Soviet Union, then Russia, and Germany, by far Europe’s biggest economy.
War, and explosions, have destroyed that link, damaging the economies of both countries.
At its peak, Russia was supplying 35% of Europe’s gas but since the war started in 2022 Gazprom has lost market share to Norway, the United States and Qatar.
The Yamal-Europe pipeline via Belarus was closed after a dispute, while Russia blamed the United States and Britain for the explosions under the Baltic Sea that closed the Nord Stream route.
Washington and London have denied they blew up the pipelines. The Wall Street Journal (WSJ) has reported that Ukrainian officials were behind the attack. Kyiv has denied that.
“Once again Putin is using energy as a weapon,” European Commission President Ursula von der Leyen wrote in a post on X, formerly known as Twitter.“He is trying to blackmail Austria & Europe by cutting gas supplies.
