OMV Terminates Gas Contract with Gazprom

Austrian energy company OMV has terminated its long-term gas supply contract with Gazprom, effective immediately, citing multiple fundamental breaches of contract after Gazprom halted deliveries on November 16. The original agreement, signed in 2006 and set to last until 2040, faced scrutiny due to its conditions, which required payment even without gas delivery. OMV's CEO, Alfred Stern, assured that the company is well-prepared with a diversified portfolio of alternative gas sources, including production from Norway and Austria, as well as LNG, and that its storage facilities are about 85% full. Austrian Chancellor Karl Nehammer emphasized that Austria will not be blackmailed by Russia and noted the failure of Russia's attempts to weaponize energy. The termination reflects a significant shift as OMV was one of the last major buyers of Russian gas in Europe following the geopolitical tensions post-Ukraine invasion. The Austrian government, which holds a substantial stake in OMV, supports the decision amid ongoing concerns about energy security.