Austria Faces Gazprom Gas Halt Amidst Energy Shift

Russia's state-owned natural gas company, Gazprom, has halted its gas supplies to Austria's main energy provider, OMV, following an arbitration ruling that awarded OMV €230 million due to previous supply issues. Austria heavily relies on Russian gas, receiving up to 98% of its supply from Russia as of December last year. Despite the halt, Austrian Chancellor Karl Nehammer reassured the public that the country has sufficient alternative sources and reserves at over 90% capacity to ensure no impact on winter heating. The disruption reflects broader tensions as Europe seeks to reduce dependency on Russian energy amidst geopolitical conflicts, notably after Russia's invasion of Ukraine. Austria is one of the few European countries still receiving Russian gas, but Ukraine plans to end its transit agreement with Gazprom by January 2025, further pressuring Austria to diversify its energy sources. European gas prices have risen in response to the announcement of the supply cut-off.