November 15, 2024
Ukrain

European countries are currently unable to quickly replace Russia with another gas supplier, head of the Austrian oil and gas company OMV Alfred Stern said in an interview with the Austrian radio station O-1 on Saturday. He was speaking about the desire of the European Union to diversify gas supplies due to the military operation of Russia in Ukraine.

Stern said that Russia’s military operation in Ukraine was a complete surprise for the Austrian oil and gas company, which finances the Russian side by buying gas.

“We’re in a difficult position. 80% of Austria’s gas supplies come from Russia. We’ve benefited from this for almost 50 years because it’s the cheapest gas,” Stern said.

“We underestimated the risk that came with Russia,” he added.

“The reality is that the volumes of gas that now come to Europe from Russia are not so easy to replace today. Massive investments are needed to replace gas imports in Europe,” Stern said.

However, the head of OMV said that in the long term, it will be possible to replace Russia with other suppliers. According to him, OMV’s gas contract with Russia is valid until 2040, but the company may consider the legal possibility of withdrawing from this agreement earlier.

“We are now working to ensure the security of supply. What consequences may be further will become clear in the coming months,” Stern said.

“The pressure on the gas market will continue to be tense,” Stern said, referring to the high cost of gas in Europe.

Russian President Vladimir Putin said on February 24 that in response to a request by the heads of the Donbass republics he had made a decision to carry out a special military operation in Ukraine, stressing that Moscow had no plans of occupying Ukrainian territories. Western countries responded to the actions of the Russian authorities by slapping sanctions against physical and legal entities.

 

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