Russia Halts Gas Supplies to Austria Amid Dispute

Russia has halted gas supplies to Austria as of 6 a.m. on Saturday, following a contractual dispute with Austrian energy company OMV over unfulfilled gas deliveries. This suspension comes after an arbitration ruling awarded OMV 230 million euros in damages from Gazprom, Russia's state gas firm. Despite the cessation to Austria, Gazprom continues to supply steady volumes of gas to Europe via Ukraine, specifically 42.4 million cubic meters on Saturday, maintaining flows to Slovakia and Hungary. Austria’s energy regulator confirmed that while deliveries to OMV have stopped, overall gas supply to Austrian customers remains stable, albeit with a 12-15% decrease in incoming quantities. The situation reflects the broader decline of Russian gas exports to Europe, which have significantly decreased since the Ukraine war began in 2022, with the Urengoy-Pomary-Uzhgorod pipeline set to close at the end of the year due to Ukraine's refusal to extend the transit agreement. Austria had been preparing for a potential halt in Russian gas supplies since the onset of the conflict, as indicated by Chancellor Karl Nehammer.