Russia will stop its gas supplies to Austria from Saturday, Austrian oil and gas group OMV said on Friday.
OMV said it had received notice from Gazprom Export, a subsidiary of Kremlin-controlled energy giant Gazprom.
The halt in deliveries is seen as Russia’s response to an arbitration ruling by the International Chamber of Commerce, which awarded OMV €230 million ($242 million) in a contractual dispute with Gazprom.
Earlier this week, OMV had asserted its right to claim the prize. It noted that this would likely have a “negative impact” on relations.
With that prediction coming true, Austrian Chancellor Karl Nehammer is expected to make a statement on the situation later on Friday.
Austria remains heavily dependent on Russian gas, even as other EU countries such as Germany have tried to end their dependence after Moscow’s large-scale invasion of Ukraine in February 2022.
The share of Russian deliveries has recently accounted for more than 80% of Austria’s total gas imports.
However, OMV previously said it has been preparing for this scenario for three years, and Austria’s position is now significantly better than in 2022, thanks to lower gas consumption and more sources of supply.
The alternative supplies must come from Norway, from Austria’s own production, or in the form of liquefied natural gas by ship via Germany or Italy.
In addition, all storage facilities are currently approximately 90% full, providing enough gas to meet Austria’s needs for approximately one year.
Even without current developments, energy cooperation between Austria and Russia, which dates back to 1968, would likely have come to an end. The transit contract for the supply of Russian natural gas via the pipeline through Ukraine and Slovakia expires at the end of this year and is not expected to be renewed.
