Russia's long-standing partner OMV drops Gazprom after supply failures

OMV has been a long-standing importer of Russian gas and a participant in a joint venture with Gazprom and Germany’s Wintershall Dea for developing the Yuzhno-Russkoye gas field in the Yamalo-Nenets Autonomous Okrug under Severneftegazprom.

OMV initially planned to purchase Russian gas until 2040.

The contract was terminated early due to "numerous significant breaches of contractual obligations by Gazprom Export", the publication wrote.

"The buyer stated that the supplier 'significantly violated contractual obligations,' as deliveries under the agreement have ceased since Nov. 16, 2024."

The contract volume was approximately 6 billion cubic meters annually.

OMV announced that the termination takes effect immediately.

The Austrian company noted that potential risks from the termination of Gazprom’s supplies had been "fully diversified through alternative gas sources over the past three years." OMV reported in November that it secured pipeline gas supplies from Norway and contracted additional long-term liquefied natural gas (LNG) volumes. Additionally, it reserved transit capacities in Germany and Italy to transport regasified LNG from marine terminals in those countries.

Previously, Gazprom filed a lawsuit against Polish gas companies.

In March 2024, Gazprom filed a lawsuit against OMV Exploration & Production GmbH in the Arbitration Court of St. Petersburg and Leningrad Oblast.