### Gazprom Halts Gas Supplies to Austria Amid Payment Dispute

In a sudden turn of events, Russia’s state-owned energy giant Gazprom is set to cease its natural gas supplies to Austria’s OMV utility starting early Saturday. This decision comes after OMV announced it would halt payments to Gazprom for an Austrian subsidiary to offset a €230 million ($242 million) arbitration award it recently won over a previous cutoff to its German subsidiary.

Chancellor Karl Nehammer assured citizens on Friday that Austria’s underground gas storage is fully stocked and that the country has secured alternative suppliers. "No one will freeze this winter, no home will be cold," Nehammer stated during an urgent appearance at the chancellery. "We cannot be blackmailed," he added, emphasizing Austria's readiness to receive gas from other regions.

Though OMV signaled the impending cutoff in a trading statement on the Central European Gas Hub website, representatives from both OMV and Gazprom declined to make immediate comments. The disruption follows a broader pattern since 2022, when Russia curtailed most of its natural gas exports to Europe, citing payment disputes. European leaders condemned these actions as "energy blackmail" by Russia in response to their support for Ukraine.

The reduction in gas supplies led to soaring prices and significant inflation, which peaked in October 2022. European countries had to quickly find alternative suppliers, often at much higher costs, sourcing liquefied natural gas from countries like the U.S. and Qatar. Despite the ongoing conflict, Austria, Slovakia, and Hungary have continued to receive Russian gas through a pipeline that traverses Ukraine. However, Ukraine has announced it will halt this gas transit after January 1, pushing these countries to seek other supply routes.

In December 2023, as much as 98% of Austria’s natural gas was imported from Russia, according to Energy Minister Leonore Gewessler. While the European Union has ceased most imports of Russian oil, it has not directly sanctioned Russian natural gas, opting instead for a nonbinding goal to stop importing Russian gas by 2027.

Austria's relationship with Russian energy dates back to 1968, when it became the first Western European country to import gas from the Soviet Union. This dependency deepened over the decades, culminating in an agreement signed by Gazprom and OMV in 2018 during President Vladimir Putin's visit. This long-term contract, valid until 2040, obligates Austria to pay for the gas regardless of whether it is delivered.

Austria now faces the challenge of diversifying its energy sources to reduce its heavy reliance on Russian gas and ensure a secure energy future for its residents.