Ukraine will cease all transit of Russian gas through its territory by the end of 2024, President Zelenskyy announced. This decision aims to prevent Russia from profiting from the war by disguising its gas as originating from other countries, such as Azerbaijan. While acknowledging potential financial losses for Ukraine and hardship for countries like Slovakia, which heavily relies on Russian gas, Zelenskyy emphasized the imperative of denying Russia further revenue for its war effort. He suggested a conditional exception: allowing transit only if European buyers refuse to pay Russia until the war ends, a scenario unlikely due to contractual obligations. This decision is likely to further strain relations between Ukraine and Slovakia, given the latter’s dependence on Russian gas and skepticism toward further supporting Ukraine.
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Gazprom will halt natural gas deliveries to Austria this weekend, ending a long-standing energy relationship. Austria’s largest energy supplier, OMV, anticipated this, having secured alternative supply routes from Germany, Italy, and the Netherlands. The country’s gas storage facilities are full, ensuring sufficient supply and dismissing fears of shortages. Chancellor Nehammer confirmed Austria’s secure energy position and reaffirmed unwavering support for Ukraine, despite Gazprom’s actions.
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Austria is set to be completely cut off from Russian gas starting this Saturday. This dramatic development stems from a recent arbitration case where the Austrian petrochemical company OMV successfully sued Gazprom for €230 million due to unreliable gas deliveries in 2022.
OMV cleverly decided to offset this substantial award against future gas deliveries, effectively issuing an ultimatum to Gazprom: pay up or face a complete halt to gas supplies. Unsurprisingly, Gazprom chose the latter, violating their contract with OMV in the process.
This unexpected move, however, ironically plays into OMV’s hands. The termination of their long-standing contract with Gazprom – a contract that was previously the cornerstone of Austria’s Russian gas imports – now allows Austria to completely exit the agreement without penalty.… Continue reading
The German Economy Ministry has instructed its state-owned LNG import terminal to reject a shipment of Russian LNG, citing the need for independence from Russian energy. This decision aligns with the EU’s efforts to replace Russian energy imports and sanction Russian gas, including LNG, following the invasion of Ukraine. The ministry’s action underscores Germany’s commitment to diversifying its energy sources and reducing dependence on Russia. While Germany no longer directly imports Russian LNG, the country still receives Russian LNG indirectly via a long-term contract with Russia’s Yamal facility, highlighting the complexity of decoupling from Russian energy.
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John Q. Hosedrinker 
Matt Underwood