Austrian Company Wins €230 Million Lawsuit Against Gazprom

Suspension of supplies from Russia is possible

Austrian gas company OMV has warned of a possible suspension of gas supplies from Russia after an arbitration ruling in its favor, which requires Russia's Gazprom to pay damages in the amount of €230 million.

This was stated in a statement by the company, reports European Pravda.

OMV announced a favorable arbitration decision under the rules of the International Chamber of Commerce regarding irregular supplies by Gazprom Export and a complete cessation of supplies to Germany in September 2022.

The arbitration awarded OMV €230 million in damages plus interest and costs in its lawsuit against Gazprom.

OMV does not expect Gazprom to pay compensation, and the company intends to collect funds under the current supply contract, which could prompt the Kremlin-controlled company to stop supplies.

“It is expected that the implementation of the compensation claim will lead to a possible negative impact on the contractual relationship under the Austrian gas supply contract, including a potential cessation of gas supplies,” the company said in a statement.

However, as the company notes, thanks to a consistent diversification strategy, OMV has successfully created extensive alternative gas supplies from non-Russian sources, as well as additional gas supply capacities.

OMV's gas portfolio includes various supply sources from Norway and additional long-term LNG volumes.

OMV confirms that the company can supply its customers with the contracted gas volumes even in the event of a possible cessation of supplies from Gazprom Export. The level of gas storage in OMV's gas storage facilities currently exceeds 90%.

In July, the Austrian Ministry of Climate Protection created a commission to examine the contract between the energy company OMV and Russia's Gazprom — it was extended in 2018 until 2040 — and determine whether it can be terminated early.

OMV was the first Western company to sign a gas supply agreement with the then Soviet Union in 1968.

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