On Saturday, Euronews reported it remains unclear whether Russia has followed through on its threat to stop gas supplies to Austria, following a contract dispute with Gazprom. However, Bloomberg noted that gas flows from Russia to Europe via Ukraine remain stable and are continuing at normal levels.
Austrian Chancellor Karl Nehammer reassured citizens on Friday that the country has secured alternative fuel supplies, ensuring that “no one will freeze this winter, no home will be cold.”
Russia had previously cut off a significant portion of its gas supplies to Europe in 2022, citing payment disputes over rubles. European Union leaders, however, viewed the move as an act of energy blackmail, a retaliation for their support of Ukraine during the ongoing Russian invasion. This disruption sent gas prices soaring and led to a steep spike in inflation across Europe, though prices have since cooled down.
In response to the cutoff, European governments scrambled to secure alternative gas sources. However, Austria, along with Slovakia and Hungary, has continued receiving Russian gas through a pipeline running via Ukraine, even as the conflict persists. Ukraine, seeking to hinder Russia from generating revenues, has said it won’t renew its transit agreement with Gazprom beyond January 2025, pushing these countries to speed up efforts to diversify their energy sources.
Austria, which traditionally relies heavily on Russian gas, has been particularly affected. At the end of 2023, it was still sourcing as much as 98 percent of its gas from Russia. In an effort to reduce this dependency, Vienna announced in February 2024 a plan to gradually phase out Russian gas and explore options for an early exit from its long-term energy contracts with Moscow.
Meanwhile, German Chancellor Olaf Scholz held a phone conversation with Russian President Vladimir Putin on Friday. This marked their first direct exchange in nearly two years, underscoring the continuing complexity of diplomatic efforts during the conflict.
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