Without paying Gazprom, the OMV of Austria drastically improved operational income – Eadily, February 4, 2025 – Politics, Russia

In the fourth quarter of 2024, the Austrian OMV drastically improved its net operational income, since it did not pay on the part of the Russian gas, so Gazprom stopped the deliveries to the European company in mid -November. OMV declared that they had complied with the decision of the Arbitration Court, which granted compensation in a dispute with a Russian company.

In the fourth quarter of 2024, the Austrian OMV significantly improved its net operational income (income less operating expenses) in the energy sector. In October to December, it amounted to 1.64 billion euros. The company exceeded last year’s figures in almost a quarter and the previous quarter, in 60%.

“The result of the fourth quarter of gas and electricity increased to 268 million euros (98 million euros in the fourth quarter of 2023),” says the latest quarterly report of the Austrian OMV.

They pointed out that the increase in net operational income was mainly due to the decision of the Stockholm arbitration in a dispute with the export of Gazprom to the compensation of 230 million euros, which the Austrian company seized the Russian in the form of gas without paying it. In November.

“After considering the related losses of coverage (insurance), the positive net impact of the arbitration award on the net operational result of the gas and electricity business in the fourth quarter of 2024 amounted to approximately 210 million euros,” says the document.

Austrian OMV reports that in the fourth quarter he received 776 million cubic meters of Gazprom gas, and on November 16 the Russian company stopped deliveries. The reason was the lack of payment of the fuel received by the Austrian company.

OMV considered such a step of Gazprom as a violation of the contract, which it was supposed to end in 2040, and terminated the agreement.

“To mitigate the consequences of such a gas From Gazprom Export, OMV will be able to fulfill its obligations to supply its direct customers.

Previously, in January 2023, OMV filed a lawsuit against the export of Gazprom in Stockholm arbitration demanding compensation for the termination of supplies under the German contract. Gazprom himself insisted that in the current conditions in Europe, the procedure would not be fair, and the Court of Arbitration of St. Petersburg and the Leningrad region prohibited OMV companies from carrying out procedures.

However, he continued and in November the referees issued a compensation verdict of 230 million euros in favor of the Austrian company. Then, OMV left Gazprom’s payment as compensation, and the Russian company arrested the Russian gas supply to OMV due to lack of payment. The Austrian company motivated its actions because it was the only option to receive compensation.

On December 11, OMV terminated the Austrian contract with the export of Gazprom. And again requested arbitration.

“On January 3, 2025, the Stockholm Chamber of Commerce ruled in favor of OMV in arbitration procedures regarding the Austrian contract, granting Gazprom Export LLC OMV compensation,” says the report. OMV clarified that compensation should amount to 48 million euros.

Alexey GrivachFneb deputy director, he believes that in November OMV simply appropriated Gazprom’s money.

“I am not sure that this is a reason worth pride,” believes the expert. In his opinion, in 2025, OMV’s performance will deteriorate due to the need to fill UGS facilities at high prices.

After stopping the Ukrainian traffic, which only Hungary and Slovakia, the cost of gas in European securities is greater than $ 500, and since last week it has been exceeding $ 570.

As EADALY He reported, in recent years Gazprom has reduced gas supplies to Europe by approximately five times. The reason were counteracts and sanctions. In the spring of 2022, due to them, Yamal-Europe stopped through Poland to Germany. Then, in May, the Ukrainian traffic decreased, since the Ukranian GTS operator stopped receiving gas at one of the two points, Sokhranovka. And at the end of August, the Nord Stream got up, which was then, on September 26, exploited by the saboteators in the Baltic Sea. The claim of the Austrian company was that the supplies in 2022 were unstable and OMV had to buy part of the gas in the stock market at a much higher price.