OMV wins arbitration as Gazprom halts gas to Austria

The Russian energy giant Gazprom informed OMV that from Saturday, 16 November, it would suspend gas supplies to Austria. The Russians made this decision shortly after OMV was awarded €230 million 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, 13 November, 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 Gazprom invoices. As the second-to-last EU state to lose oil supplies from Russia, Austria now leaves only Hungary on Gazprom's supply list.

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 obligations.

In response to Gazprom's announcement, gas prices on the European market temporarily increased. On the Dutch TTF exchange, December contracts rose from approximately £40 to nearly £41.50 per MWh, and January contracts from approximately £40.30 to £41.70 per MWh. However, after a short time, prices returned to previous levels.