Austria’s energy company OMV has seized $241 million (€230 million) worth of natural gas deliveries from Russia’s Gazprom for October. This move follows an arbitration ruling in OMV’s favor, which prompted Gazprom to cut off its supply, according to sources familiar with both companies.
Earlier this month, OMV announced that it had won a €230 million arbitration award against Gazprom over irregularities in its gas deliveries to Germany. OMV stated it would take immediate steps to enforce the ruling. As a result, the company had warned that the dispute could lead to a breakdown in its contract with Gazprom, potentially halting gas deliveries.
On November 16, Gazprom followed through on the warning and halted its gas supply to OMV.
In response, OMV seized gas deliveries worth €230 million for October, in an effort to recover the arbitration award. Sources close to OMV and Gazprom explained that this was seen as the company’s last chance to recover the funds, especially given the uncertainty surrounding future Russian gas supplies to Europe after the expiration of the gas transit agreement via Ukraine on December 31, 2024.
Gazprom, however, viewed the seizure of gas deliveries as a failure to pay for the gas supplied, prompting the decision to stop deliveries, a source close to the Russian company said. This marks the first instance of a European customer failing to pay for Gazprom’s gas, the source added.
Despite the cut in supply to OMV, Russian natural gas flows to Europe through Ukraine have remained steady. Gazprom continues to send around 42 million cubic meters of gas per day to countries including Austria, Slovakia, and the Czech Republic, maintaining its obligations to other customers.
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