Gazprom Cuts Gas to Austria Following Arbitration Ruling

Gazprom Cuts Gas to Austria Following Arbitration Ruling

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Gazprom Cuts Gas to Austria Following Arbitration Ruling

Gazprom halts gas supplies to Austria after OMV wins arbitration case, prompting Austria to further diversify gas sources.

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Why is Gazprom Export halting gas supplies to Austria?
Gazprom Export will halt gas supplies to Austria starting November 16th, following an arbitration ruling won by OMV, Austria's largest fossil fuel company, against Gazprom Export for irregular gas supplies to Germany.
What steps is Austria taking to secure its natural gas supply?
Austria has increased efforts to diversify its gas supply sources beyond Russia, seeking alternatives from countries like Turkey and Norway. The country also maintains high gas storage levels to mitigate potential disruptions from Russia.
How has the Russia-Ukraine war influenced Austria's energy policy?
Following the Russia-Ukraine war, the risk of doing business with Russian energy companies has significantly increased. Countries like Austria, Slovakia, and Hungary, previously reliant on Russian gas, are now actively pursuing alternative suppliers and bolstering their energy infrastructure.
How does OMV plan to address the arbitration award against Gazprom Export?
OMV plans to offset the arbitration award by withholding payments owed to Gazprom Export under their gas supply contract. This amounts to €230 million plus interest and costs, aiming to compensate for financial losses in 2022.
What is the background of the arbitration case between OMV and Gazprom Export?
The arbitration, governed by the International Chamber of Commerce (ICC) rules, was initiated by OMV in January 2023 due to Gazprom's irregular gas supplies. OMV will use the awarded compensation to boost its operational cash flow and clean carbon capture and storage figures.