Austrian utility says its natural gas flow stopped by Russia's Gazprom

VIENNA, Austria: Russia's state-controlled energy giant Gazprom ceased natural gas deliveries to Austria on November 16 morning following a payment dispute, the Austrian energy utility OMV confirmed.

The halt comes after OMV decided to stop payments to Gazprom in response to a 230 million euros (US$242 million) arbitration award granted by the International Chamber of Commerce.

OMV stated that no gas deliveries had been made since 6 a.m. on November 16. The utility reassured customers that it has sufficient reserves to manage the disruption, with Austria's gas storage facilities reported to be over 90 percent full. Earlier this week, OMV announced that it had secured alternative supplies to mitigate any impact of a potential cutoff.

The decision to halt payments stems from an earlier dispute in which Gazprom interrupted gas supplies to OMV's German subsidiary, leading to the arbitration ruling in OMV's favor.

Austrian Chancellor Karl Nehammer addressed the situation during an emergency press conference, emphasizing that the country's energy supplies are secure despite the abrupt suspension. "We are well-prepared for winter," Nehammer reassured.

European Union Commission President Ursula von der Leyen also condemned the move, labeling it a continuation of Russia's strategy to weaponize energy supplies. "Once again, Putin is using energy as a weapon," she wrote on X, formerly Twitter. "We are prepared and ready for the winter."

This development is the latest in a series of energy disputes between Russia and Europe following the invasion of Ukraine. In 2022, Russia reduced natural gas exports to the continent, citing payment disagreements. European leaders countered these measures by diversifying energy sources and increasing imports of liquefied natural gas from countries like the United States and Qatar.

Despite efforts to reduce dependence on Russian gas, Austria remains one of Europe's most reliant nations. According to Energy Minister Leonore Gewessler, Russian imports accounted for 98 percent of its natural gas supply as recently as December 2022.