The reason for the termination of Gazprom’s supplies to Austria was the confiscation of gas: Reuters

Austrian energy company OMV Gas Marketing & Trading confiscated natural gas worth €230 million from Russia’s Gazprom as compensation for breach of contract terms. This was the reason for the termination of the supply of Russian fuel to Austria, informs Reuters with reference to sources in the energy sector of Austria and Russia.

Earlier, OMV made public information about the decision of the international arbitration, which satisfied its claim against Gazprom in the amount of €230 million in the case of termination of gas supply to the German division of the company.

OMV then took some of the gas delivered in October on a take-or-pay basis as compensation under a court order. Gazprom regarded this step as non-payment for the gas received and completely stopped the supply to Austria within two days. Sources close to Gazprom noted that this is the first time that an EU country has not paid for the delivered gas.

Gazprom refrains from commenting on further relations with OMV. In turn, the press secretary of the Austrian company confirmed the suspension of supplies and noted that it is not expected to resume.

For a long time, Austria remained one of the largest and “most loyal” clients of Gazprom in Europe. However, on November 16, it became known that the supply of gas to the country has been completely stopped. Austrian Prime Minister Karl Neghammer said the decision did not come as a surprise and the country had prepared in advance for such a scenario.