Austrian OMV company terminates contract with Gazprom Export

Austrian oil and gas company OMV has terminated its long-term gas supply contract with Russia's Gazprom Export, the OMV website reported on Dec. 11.

The contract was originally set to last until 2040.

The company cited "numerous material violations of contractual obligations" by Gazprom. According to OMV, gas deliveries stopped on November 16, 2024

"Thanks to the successful efforts of our gas team over the past three years, OMV is well positioned to leverage our diversified supply of alternative gas sources, ensuring the security of supply for our customers," said OMV CEO Alfred Stern, highlighting current gas reserves from Norway, Austria, and LNG sources.

Austrian Chancellor Karl Nehammer also commented on the situation, stating on X that Russia's attempt to weaponize energy "didn't work."

"Austria will not allow itself to be blackmailed by Russia," he said.

OMV noted that its gas storage facilities are currently about 85% full, ensuring stability for customers amid the transition.

OMV supplies about 30% of the Austrian gas market, and its biggest shareholder is the Austrian government.

US considering implementing harsher sanctions on Russian oil ahead of Trump’s inauguration, Bloomberg reports

Although no concrete decisions have been made on the potential sanctions, sources familiar with the discussions told Bloomberg that a number of avenues are being explored, including sanctions on Russia’s so-called ‘shadow fleet.’

The Kyiv IndependentDmytro Basmat