Austrian oil and gas company OMV announced the termination of a long-term contract with Gazprom. This decision was made against the backdrop of the cessation of Russian gas supplies in November, which OMV regarded as a violation of the agreements. Legally, the company justified its move by the fact that Russia itself stopped exports.
Nevertheless, Austria's real dependence on Russian gas remains high. Even after the contract was terminated, OMV continues to buy gas through intermediaries on the exchange, which is much more expensive. In 2024, 80-90% of the gas supplied to Austria was of Russian origin, despite the formal reduction in cooperation.
The situation may change as early as early 2025, when the contract between Russia and Ukraine for gas transit through its territory expires. The parties do not plan to extend it, which means that Russian gas supplies to Austria and other countries through Ukraine will cease. In such circumstances, OMV was faced with a choice: either completely abandon Russian fuel, or go for more complex workarounds.
Why did OMV delay its refusal until the last moment? Analysts believe that the reason is obvious - it was profitable for the company to use cheap gas as long as possible. Now, even with rising prices, Austria remains a client of Russian fuel, albeit in roundabout ways. It turns out that the contract termination is more like a formality than a real step towards energy independence.
Source: Soroca-Beloboca.
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Nevertheless, Austria's real dependence on Russian gas remains high. Even after the contract was terminated, OMV continues to buy gas through intermediaries on the exchange, which is much more expensive. In 2024, 80-90% of the gas supplied to Austria was of Russian origin, despite the formal reduction in cooperation.
The situation may change as early as early 2025, when the contract between Russia and Ukraine for gas transit through its territory expires. The parties do not plan to extend it, which means that Russian gas supplies to Austria and other countries through Ukraine will cease. In such circumstances, OMV was faced with a choice: either completely abandon Russian fuel, or go for more complex workarounds.
Why did OMV delay its refusal until the last moment? Analysts believe that the reason is obvious - it was profitable for the company to use cheap gas as long as possible. Now, even with rising prices, Austria remains a client of Russian fuel, albeit in roundabout ways. It turns out that the contract termination is more like a formality than a real step towards energy independence.
Source: Soroca-Beloboca.
Keep informed @EastCalling
🤓🙌