In an arbitration proceeding under the rules of the International Chamber of Commerce (ICC), OMV was awarded damages of 230 million euros. The arbitration award relates to the irregular deliveries from Russian Gazprom and the complete cessation in Germany in September 2022. OMV Gas Marketing & Trading GmbH initiated the procedure in January 2023. The claim for damages will be offset against OMV’s payment obligations to Gazprom from the Austrian supply contract with immediate effect.
OMV is prepared for cuts
The implementation of the claim for damages is expected to have a possible “negative impact” on the contractual relationships under the Austrian supply contract between OMV Gas and Gazprom, including a potential cessation of gas deliveries. According to its own information, OMV has set up an “extensive alternative gas supply from non-Russian gas as well as additional gas delivery capacities”. OMV’s gas portfolio includes various supply sources, including from Norway and also liquid gas, so-called LNG. OMV confirms that the company “can supply the contractually guaranteed gas volumes to its customers even in the event of a possible supply interruption by Gazprom Export”. The OMV gas storage level is currently over 90 percent.
“We are not dependent on Russian gas”
OMV boss Alfred Stern had already said in July that OMV was no longer dependent on Russian gas. OMV has already significantly reduced its purchase of Russian gas. However, OMV says it cannot withdraw from the long-term supply contract, which obliges it to purchase gas from Russia in any case. If Gazprom were to stop deliveries, this would be an opportunity for OMV to stop purchasing Russian gas. Even if, as Ukraine threatened, no more Russian gas flows through Ukraine from the turn of the year, Russia would be in breach of contract and OMV could withdraw from the now unpopular long-term supply contract. The scenario that gas from Russia will no longer come to Austria has now lost its horror.
