Austrian OMV will continue to buy Russian gas under a long-term contract

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Austrian oil and gas company OMV CEO Alfred Stern told the newspaper Financial Timesthat the concern will continue to purchase Russian gas under a long-term contract with Gazprom, which is valid until 2040.

OMV is an oil and gas company that, according to the FT, supplies 30% of the Austrian gas market. In 2022, OMV’s revenues amounted to €62 billion. The company’s largest shareholder is the Austrian government.

“As long as Gazprom continues to supply, … we will continue to receive these volumes from Gazprom,” Mr. Stern said.

Asked by the FT how the company would react if the European Union imposed sanctions on Russian gas, the CEO said it was up to politicians to decide, but warned that removing sources could drive up prices.

Mr. Stern stressed that OMV, as an industrial company, has an obligation to use available sources as long as it is legally acceptable.

Last month, Austrian Energy Minister Leonor Gewessler statedthat the country has reduced the share of Russian gas purchases by December 2022 to 50% of total gas imports. At the same time, she called on Austrian energy companies to make more efforts to refuse fuel from the Russian Federation.

The share of Russian gas in Austria’s energy purchases is constantly changing. In November, the share of Russian gas in Austrian imports was 41%, in October – 23%. This is due to the fact that gas market participants are not required to report to the Ministry of Energy the exact source of origin of imported gas. This may lead to the fact that, despite efforts to reduce the share of Russian gas in imports, this share will actually grow.

Erdni Kagaltynov

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