Austrian Company OMV Seizes Russian Gas Worth 230 Million Euros

Austrian oil and gas company OMV has confiscated Russian gas valued at €230 million as payment for an arbitration ruling against Gazprom.

According to Reuters, five sources confirmed the development, marking a significant shift in relations between the two entities.

OMV was one of the few European buyers of Russian gas following Gazprom’s loss of most of its clients after Russia’s full-scale invasion of Ukraine in 2022.

On November 13, OMV announced its victory in arbitration proceedings against Gazprom in Germany, which awarded €230 million in compensation for irregular gas deliveries to OMV’s German subsidiary. The company stated it would take immediate measures to enforce the ruling.

Three days later, Gazprom halted gas supplies to OMV. According to sources close to both Gazprom and OMV, the Austrian company confiscated October gas deliveries to recover the arbitration-awarded sum. One Gazprom-linked source noted this was the first instance where a European Union client failed to pay Gazprom for gas.

A source familiar with OMV’s position indicated the company viewed receiving October’s gas as a final opportunity to enforce the ruling, particularly as Ukraine plans to halt Russian gas transit through its territory starting in January 2025.

Gazprom considers the confiscation of gas a non-payment, prompting its decision to suspend further supplies. Despite contracts between OMV and Gazprom remaining valid until 2040, recent developments suggest OMV may be exploring alternatives to Russian gas, according to multiple sources familiar with the matter.

The suspension of gas deliveries could enable OMV to claim a breach of contract by Gazprom, one source added.

OMV’s spokesperson confirmed the cessation of Gazprom supplies and stated the company does not expect the situation to change. Gazprom has declined to comment on its future relationship with OMV.