Austria. Suddenly they stood up to Gazprom. This may be the end of many years of cooperation

Austria was one of Gazprom's most loyal customers. Russian gas has been supplied to the local OMV concern continuously since 1968. Even the invasion did not change the decision Russia on Ukraineas a result of which EU countries distanced themselves from the Kremlin and focused on importing blue fuel from USA, Norway and Qatar.

On Wednesday, November 13, OMV announced that it had won its arbitration case in Germany against Gazprom for the amount of EUR 230 million in connection with irregular deliveries to its German unit. The company decided to collect the amount due by taking over October gas deliveries.

Gazprom however, it did not recognize the takeover applied, and due to lack of payment, tap with Russian gas has been twisted. OMV's contracts with Gazprom are valid until 2040 and contain a “take or pay” clause, according to which the Austrian company must pay for the raw material even if it does not collect it.

Read also: The Russian giant has suspended gas deliveries

The sudden severance of relations between Gazprom and OMV surprised many experts. This decision significantly limits Gazprom's long-standing economic and political influence in Central Europe.

Gazprom refused to comment to Reuters on its future relationship with OMV. The spokeswoman for the Austrian company stated that: gas supplies have been suspended and this situation is not expected to change.

“At the peak of Russian cuts in natural gas supplies to Europe in 2022, Austria purchased the raw material for $300-400 per 1,000 cubic meters, while spot prices reached $1,000 per 1,000 meters,” Reuters reported.

The suspension of deliveries last week gives OMV an opportunity to argue that Gazprom has breached the existing contract.

According to a Reuters review of regional gas flows, despite OMV being cut off from Gazprom's supplies, Austria still receives Russian gas via Slovakia.