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Austria's OMV terminates Gazprom gas agreement after supply row

Austria's OMV stated on Wednesday it had actually ended its long-lasting gas supply contract with Gazprom after the Russian firm stopped shipments last month in the middle of a row that has been highly politicized due to the war in Ukraine.

The step formally ends the moribund contract considering that Gazprom stopped 50 years of gas flows to the Austrian firm after OMV won an arbitration case against Gazprom over a separate agreement and said it would recoup its 230 million euros ($ 241. million) in damages by not paying Gazprom's invoices for the. primary agreement.

OMV today announced the termination of its long-lasting. natural gas supply agreement with Gazprom Export in reference to. several fundamental breaches of legal responsibilities by. Gazprom Export. This termination takes instant result, OMV. said in a statement, describing Gazprom's shipment stop.

The contract was due to run until 2040.

OMV was amongst the couple of staying large, long-term buyers. of Russian pipeline gas in Europe after Gazprom lost almost all. its clients there after Russia's intrusion of Ukraine in 2022.

Before the war, Russia was Europe's single most significant. provider of gas.

Russian gas has kept streaming into Austria through pipeline. through Ukraine and Slovakia, albeit at lower volumes now OMV. has actually been cut off. The spat has placed the spotlight on Austria's. continued dependence on Russian gas although it has made. contingencies for a cut-off and has big volumes in storage.

Gazprom did not comply with the contracts, which is why. OMV is instantly terminating the agreement, Austrian. Chancellor Karl Nehammer said on X after OMV's statement.

The Austrian state owns 31.5% of OMV.

Our energy supply is secured due to the fact that we are well. prepared. Austria will not be blackmailed by Russia, Nehammer. added, accusing Russia of trying to weaponize its energy. materials.

(source: Reuters)