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Austria’s Gas Supply Disrupted as Russia Halts Deliveries

November 17, 2024 TruthUSA

Over 90% of the natural gas consumed in the European country typically originates from Russia.

Russia, a significant energy supplier to Austria, has halted its gas exports to the nation as of Nov. 16, according to Russian state-owned natural gas company Gazprom.

Gazprom notified Austria’s largest energy supplier, OMV, that all gas supplies will be discontinued. As of March, more than 90% of Austria’s gas imports were from Russia.

OMV stated that they had anticipated a potential interruption in gas supply and have shifted their dependence to non-Russian sources. Concerns regarding energy shortages affecting the economy during the winter have been addressed by Austrian authorities.

Karl Nehammer, Austria’s chancellor, reassured citizens about energy availability following Russia’s announcement. “What we have been preparing for since the outbreak of war in Ukraine has come to pass,” he said in a post on Nov. 15.

“I can assure you: No one will be cold in the winter, no homes will go without heat. We are prepared: our gas storage facilities are full, and from tomorrow we will receive sufficient gas from other sources.”

Ursula von der Leyen, president of the European Commission, accused Russian President Vladimir Putin of using “energy as a weapon,” according to a post on Nov. 16.

“He is attempting to blackmail Austria & Europe by cutting gas supplies. We are ready for this and prepared for the winter. Gas storage across the EU is full. As I told @karlnehammer yesterday, Europe stands united in supporting Austria,” she stated.

Gazprom’s decision to halt gas supplies followed an arbitration case victory by OMV regarding irregular gas supplies from the Russian company to Germany.

The International Chamber of Commerce, based in France, ruled in favor of the Austrian energy supplier. OMV was awarded 230 million euros (US$242 million) plus interest and costs. OMV recovered this amount from payments owed to Gazprom, after which the Russian company ceased gas deliveries.

Nehammer dismissed concerns about Austria facing difficulties, highlighting that the country’s natural gas storage level is currently at 93%, sufficient for 94.5 trillion watt-hours of power generation. “That is more than the annual requirement for the entire country,” he stated.

“All gas suppliers have been mandated by law to develop precautionary measures so that we are as well-prepared as possible for this day. We are demonstrating that we will not allow ourselves to be blackmailed by Putin!” he added.

According to the Russian news agency Interfax, Gazprom’s decision aligns with Moscow’s terms on gas exports to countries considered unfriendly. Gas supplies would be stopped in case of incomplete payments under the policy.

EU Gas Situation Amid War

In a post on Nov. 15, ING bank mentioned that European natural gas prices traded at their highest levels since November last year following the cut in Gazprom’s supply.

Dutch TTF Natural Gas futures, a leading European benchmark for gas prices, increased by 0.7% to close at 46.55 euros on Friday.

After Russia’s invasion of Ukraine in 2022, the European Union initiated a plan to reduce the region’s reliance on Russia for fossil fuels.

“With EU sanctions prohibiting seaborne imports of Russian crude oil and refined petroleum products as well as Russian coal, imports of Russian gas … reduced from a 45% share of overall EU gas imports in 2021 to only 18% by August 2024,” according to a recent report from the European Union.

After discontinuing Russian supplies, EU governments rushed to secure alternative energy sources. Liquefied natural gas exports from the United States increased significantly, with the largest U.S exporter Cheniere Energy Inc. signing multiple long-term contracts.

Meanwhile, the upcoming presidency of Donald Trump in January 2025 creates a potential path for resolving the Russia–Ukraine conflict.

Ukrainian President Volodymyr Zelenskyy recently indicated that the conflict might end with the new Trump administration in power.

During his election campaign, Trump pledged to resolve the conflict, stating that the U.S had spent too much on supporting the European nation against Moscow.

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