Russia Stops Gas Flow to Austria in Payment Dispute

Russia’s Gazprom halted natural gas supplies to Austria on Saturday in a payment dispute, marking another reduction in Moscow’s dwindling energy ties with Europe nearly three years after the Ukraine invasion.

Austrian utility OMV said deliveries stopped at 6 a.m. (0500 GMT) after it moved to offset a 230 million euro ($242 million) arbitration award against Gazprom by withholding payments for current gas supplies.

Austria’s energy regulator E-Control said prices and supplies to Austrian customers remained steady. The country gets up to 98% of its gas from Russia as of December last year, according to Energy Minister Lenore Gewessler.

Gazprom maintained its daily flow of 42.4 million cubic meters to Europe via Ukraine, with Slovakia’s state-owned SPP reporting continued deliveries and increased purchases by other buyers.

The dispute comes as the Soviet-era Urengoy-Pomary-Uzhgorod pipeline through Ukraine, one of Russia’s last major gas routes to Europe, faces closure at year-end. Ukraine does not plan to extend the five-year transit agreement that supplies gas to Slovakia, the Czech Republic, and Austria.

Russia has lost most of its European gas market since 2022, when it cut supplies citing payment disputes — a move European leaders called energy blackmail over their support for Ukraine. The Nord Stream pipeline to Germany was later destroyed in explosions.

Austrian Chancellor Karl Nehammer sought to reassure the public about winter supplies, with OMV saying its storage is more than 90% full. Europe has increasingly turned to alternative suppliers, including US and Qatari liquefied natural gas.

Without Austria, significant Russian gas supplies to Europe will flow only to Hungary and Slovakia, with Hungary receiving deliveries via Turkey. Russian gas transit through Ukraine in 2023 has fallen to about 8% of peak flows in 2018-2019.


Information for this story was found via Reuters, AP News, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Ukraine’s Central Bank Suspends Digital Money Transfers in Connection With Martial Law Declaration

Ukraine’s central bank is imposing a sweeping set of new measures to crack down on...

Friday, February 25, 2022, 11:29:00 AM

Adidas Halts Partnership with Russian Football

German-based Adidas has suspended its partnership with Russian football, joining a growing list of companies...

Tuesday, March 1, 2022, 01:30:00 PM

Russian Search Engine Yandex Estimates “12 To 18 Months” Operations Following Sanctions

Yandex NV (Nasdaq: YNDX) is looking at 12 to 18 months of operations in “the...

Friday, March 4, 2022, 12:50:00 PM

UK Proposes Alternative Ukraine Peace Path After White House Showdown

Britain pledged military and financial support for Ukraine totaling about £4 billion on Sunday as...

Monday, March 3, 2025, 04:24:00 PM

New Study Finds Americans Now Really Don’t Like Russia

A new poll by Gallup found that Americans’ “already-negative opinions of Russia” have sunk to...

Tuesday, March 14, 2023, 02:18:00 PM