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Russia Continues Gas Supplies to Europe via Ukraine Despite Cutting Off Austria

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In 2023, Russia sent approximately 15 billion cubic meters of gas through Ukraine to Europe, maintaining a steady supply despite the suspension of deliveries to Austria. This move by Russia highlights its ongoing role in Europe's energy landscape, even as tensions around gas supplies intensify. The situation underlines the complexities of Europe's dependence on Russian energy and the ongoing geopolitical challenges.

Ongoing Gas Flows Amid Tensions

Despite the disruption to Austria, Gazprom, Russia’s state-owned energy giant, continued to send gas to Europe via Ukraine on Saturday. The company announced it would deliver 42.4 million cubic meters of gas, the same amount as the previous day. While these figures may seem small compared to the peak Russian gas flows to Europe in 2018 and 2019, they still contribute to the continent’s energy mix. In total, Russia sent 15 billion cubic meters of gas through Ukraine in 2023, which represents only about 8% of its peak gas exports to Europe.

Austria’s Gas Supply Cut

Austria, which traditionally relied heavily on Russian gas, saw its gas supply from Gazprom cut off after a ruling in favor of OMV, the largest energy supplier in Austria. The ruling was due to Gazprom’s failure to meet its supply commitments to OMV’s subsidiary in Germany. As a result, Austria received a formal notification from Russia on Friday, stating that gas deliveries to OMV would cease starting Saturday.

This decision marks a significant shift, as Austria had long depended on Russian energy supplies. Before the war in Ukraine, Russia was the largest natural gas supplier to Europe, and OMV typically received about 40% of its gas via Ukraine, amounting to roughly 17 million cubic meters per day.



Impact on Energy Supply and Strategy

OMV, which is partly state-owned, announced that the total volume of gas affected by the Russian decision could reach 7400 megawatt hours, or about 5 terawatt hours per month. Despite the disruption, Austria's energy minister Leonore Gewessler reassured the public that the country had taken extensive measures to secure its energy supplies. She emphasized that energy reserves were at full capacity and that Austria could rely on gas pipelines from Italy and Germany.

Austrian Chancellor Karl Nehammer echoed these sentiments, reassuring citizens that “no one will feel the cold this winter.” This reflects Austria's preparedness in securing alternative sources of energy in the face of Russia's decision to use energy as a geopolitical tool.

The Broader European Energy Landscape

Austria is not the only European country impacted by the changing dynamics of gas supplies. In 2023, over 65% of the natural gas received by Austria and its neighbors—Hungary and Slovakia—passed through Ukraine. The European Union's ongoing efforts to reduce dependence on Russian energy sources, alongside geopolitical tensions and pipeline sabotage, have made energy security a top priority for member states.

Hungary’s Stance on EU Sanctions

In addition to the energy disruptions, Hungary's Prime Minister Viktor Orban called on the European Union to reconsider its sanctions on Russia, which, according to him, have kept energy prices high and harmed the competitiveness of European businesses. Orban has consistently criticized the EU's approach to Russia and its financial and military support for Ukraine.

Hungary’s dependence on Russian energy is substantial, with 80-85% of its gas coming from Russia, along with 80% of its crude oil supply. Orban’s stance reflects a broader divide within the EU regarding the effectiveness and impact of sanctions on Russia.

Conclusion

The ongoing gas dispute between Russia and Austria serves as a stark reminder of Europe’s continued vulnerability in the face of Russian energy influence. While Austria has secured alternative sources for its energy needs, the broader European energy crisis remains unresolved. Countries like Hungary continue to voice their opposition to sanctions, highlighting the complexity of balancing energy security with geopolitical objectives. As the winter months approach, Europe will need to further diversify its energy sources and strengthen its resilience against future disruptions.

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