EurOil: OMV warns Russia could cut off its gas supply

Austrian oil and gas company OMV warned on May 22 that gas supply from Russia’s Gazprom could be halted in relation with a foreign court ruling, without identifying the case.

In a statement, the group said it had found out about the potential suspension through a ruling obtained by a major European energy company, which it did not name. It added that it would be able to find replacements to cover the lost Russian supply, including Norwegian gas and LNG.

The ruling that OMV referred to, if enforced, would require the Austrian company’s subsidiary OMV Gas Marketing & Trading (OGMT) to pay the unnamed European energy company, in lieu of Gazprom.

“In this respect, it is currently not known to OGMT whether and when such an enforcement might occur,” OMV’s statement read.

According to OGMT, Gazprom Export will likely suspend gas supply in response, pointing to the Russian company’s conduct in similar situations in the past.

Russia drastically cut gas supply to Europe in 2022, triggered a number of legal disputes worth hundreds of millions of dollars and in some cases even more. While Russia has claimed money for buyers’ failure to pay under contract terms, buyers have sought compensation for the non-delivery of supplies.

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