There has been no reduction in the amount of Russian gas flowing into Europe, despite supplies to Austria's main energy firm being cut, due a payment dispute.
Gazprom turned the taps off last week - but the Austrian government says it can continue to meet the country's energy needs. Our correspondent Johannes Pleschberger reports from Vienna.
Gazprom turned the taps off last week - but the Austrian government says it can continue to meet the country's energy needs. Our correspondent Johannes Pleschberger reports from Vienna.
Category
🗞
NewsTranscript
00:00Businessman Christian Zettner is concerned about Russia's decision to stop supplying Austria with natural gas.
00:07After heating costs soared in recent years, the repair shop owner in Vienna fears another expensive winter.
00:16Gas prices are likely to rise again and this will boost inflation.
00:20This price spiral is absurd and jeopardizing our economic sector.
00:25Businesses are starting to turn their back on our country.
00:30Currently, Austrians pay more than twice as much for gas than they did three years ago.
00:35For now, these prices should remain relatively stable, says energy analyst Anna Subasic.
00:41Austria's oil and gas company OMV has stored enough gas for more than a year.
00:47Austrian businesses don't have to worry because OMV has diversified its portfolio and is well supplied.
00:54The only reason where I could see prices getting a bit higher is if Germany keeps the levy on the gas that's passing through its territory right now.
01:04Last weekend's abrupt supply cut announcement alarmed markets across Europe and beyond.
01:10But then it became evident that Russia's gas pump company actually continued to send gas to Slovakia and Austria.
01:16It's not clear though where the gas supplies intended for OMV have been redirected.
01:21We still see that some flows are coming to Slovakia under this long-term contract.
01:27And what is happening is that some of this gas could be resold or sold spot to Austria until the end of the year.
01:35Austria's biggest fossil fuel company OMV has been trying to end its business dealings with Russia's Gazprom since the beginning of the Ukraine conflict.
01:45But binding contracts mean it is forced to buy Russian gas until 2040.
01:50The current supply stop could be OMV's chance to opt out of these agreements if Gazprom doesn't resume deliveries soon.
01:59After decades of cheap gas from Russia, it looks like Austria will have to get used to elevated energy prices.
02:05Business people and private consumers hope there won't be further price hikes.
02:10Johannes Blechberger, CGTN, Vienna.