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Friday, Nov 15, 2024

Russia Halts Gas Supply to Austria via Ukraine

Austria prepares for anticipated gas supply interruption as Russia suspends supply through Ukraine
On Friday, Russia announced it will suspend its natural gas supply to Austria via Ukraine starting Saturday.

This development coincides with the scheduled closure of the oldest pipeline linking Russia with Europe, which has been operational since the Cold War.

Ukraine had previously declared it would not renew its transit agreement with Russia's state-owned Gazprom, aiming to deprive Russia of revenue potentially used to fund its war against Ukraine.

Despite this suspension, Russia will continue to supply significant gas quantities to Hungary and Slovakia, with Hungary receiving gas mainly through a pipeline via Turkey.

Austrian Chancellor Karl Nehammer stated that the notification from Gazprom was anticipated, and Austria has prepared for this eventuality.

Austria's largest energy provider, OMV, has made alternative arrangements to import gas through Germany, Italy, and the Netherlands.

The interruption in Russian gas imports to Austria stems from a contractual dispute between Gazprom and OMV.
The decision by Gazprom may intensify concerns in Austria regarding the upcoming winter heating season.

Additionally, Ulrich Schmid, a professor at the University of St. Gallen, suggested this move by Russia carries geopolitical implications, as it sends a message to the Austrian political landscape, given that the pro-Russian Freedom Party was excluded from coalition talks following the September elections.

Austria was one of the first Western European countries to sign a gas agreement with the Soviet Union in 1968.

Meanwhile, Hungary's Foreign Affairs and Trade Minister, Péter Szijjártó, announced a 15-year long-term gas supply deal with Russia in September 2021, just months before Russia's invasion of Ukraine.
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