FSUOGM: Russia to remain OMV’s primary gas source

Alfred Stern, CEO of the Austrian energy group OMV, said his company would continue to source the majority of its natural gas supplies from Russia in the winter of 2023/2024, even though it has signed contracts that allow it to meet its need with imports from other suppliers.

In an interview with the Financial Times, Stern pointed out that the long-term take-or-pay contract that OMV signed with Russia’s Gazprom in 2018 was still valid. The Austrian company has no intention to exit this contract, which expires in 2040, he said.

“As long as Gazprom will supply ... we will continue to take these quantities from Gazprom,” he declared.

OMV’s contract does not violate the energy sanctions imposed by the EU. Brussels does bar the bloc’s member states from purchasing Russian crude oil and petroleum products, but it has not taken similar steps to restrict gas imports. Even so, it has been pressing EU member states, including Austria, to curtail imports of Russian gas.