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OMV admits Gazprom Export to halt supplying gas over payments to another company

Meanwhile, in the case of such a scenario, OGMT would still be able to supply its contractual customers with gas from alternative, non-Russian sources, the company noted

MOSCOW, May 22. /TASS/. OMV considers it likely that Gazprom Export will halt supplying gas under the contract if a foreign court decision obtained "by a major European energy company" would require OMV’s subsidiary to make payments to this company instead of Gazprom Export, the Austrian company said in a statement.

"OMV Gas Marketing & Trading GmbH (OGMT) has learned about a foreign court decision obtained by a major European energy company which, if enforced in Austria against OGMT, would require OGMT to make payments under its gas supply contract with Gazprom Export to such European energy company (instead of Gazprom Export). In this respect, it is currently not known to OGMT whether and when such an enforcement might occur," the statement reads.

In case of such an enforcement, the Austrian company considers it likely that "Gazprom Export will halt supplying gas under the gas supply contract with OGMT, thereby affecting the Austrian gas market," according to the report. This assessment is based on Gazprom Export’s conduct in similar situations, OMV noted.

Meanwhile, in the case of such a scenario, OGMT would still be able to supply its contractual customers with gas from alternative, non-Russian sources, the company added.

Earlier on Wednesday the Court of Arbitration of St. Petersburg and the Leningrad Region upheld Gazprom Export’s legal claim against OMV Gas Marketing & Trading GmbH banning the continuation of the proceeding in the foreign arbitration court.

OMV Gas Marketing & Trading GmbH is a subsidiary of Austria’s OMV AG. In June 2018 an agreement was signed to extend the existing contract between Gazprom Export and OMV Gas Marketing & Trading GmbH for the supply of Russian natural gas to Austria through 2040. Previously the contract was effective until 2028.

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