Russia’s Gazprom has cut natural gas supplies to Austria's OMV, severing a crucial link in the dwindling network of Russian gas deliveries to Europe. The move came after Vienna revealed an arbitration ruling awarding OMV damages for unfulfilled supplies to its German subsidiary. Austria's energy regulator confirmed the halt on Saturday, with flows stopping at 6 a.m. local time, though domestic prices and supply levels remained stable. This decision follows Austria’s announcement that gas transit via Ukraine, a Soviet-era route, will cease by year-end as Kyiv declines to renew the transit deal amid the ongoing war.
This latest development underscores the collapse of Russia’s dominance in Europe’s gas market, which has plummeted since the 2022 invasion of Ukraine. Once supplying 35% of Europe’s natural gas, Gazprom’s share has been largely replaced by imports from Norway, Qatar, and the U.S. The loss of Austria, historically a key customer, leaves only Hungary and Slovakia reliant on Russian gas in significant volumes. Meanwhile, German Chancellor Olaf Scholz’s recent call with Russian President Vladimir Putin hinted at possible energy negotiations but underscored the fractured relationship between Moscow and Europe.
The energy standoff follows years of escalating tensions over disrupted gas pipelines and geopolitical clashes. The Nord Stream pipelines remain offline after mysterious 2022 explosions, with blame circulating between Russia, Ukraine, and Western nations. As Austria turns to legal and financial measures to offset supply losses, Europe braces for further energy insecurity, highlighting the lasting repercussions of war on the continent's energy landscape.
