Austria's OMV secures $243 million arbitral award for Gazprom's irregular German gas supplies

Austrian integrated oil and gas company OMV announced on Nov. 13 that it had secured an arbitral award from the International Chamber of Commerce exceeding $243 million (230 million euros).

This ruling relates to irregularities in German gas supplies provided by Gazprom. OMV noted that the award, which includes interest and costs, will help offset the financial losses it suffered in 2022.

The company anticipates that its contract with Gazprom Export, a subsidiary of the Russian energy giant, could worsen, potentially resulting in a halt to gas supply. To mitigate the impact, OMV confirmed plans to offset claims against invoices under its Austrian gas supply contract with Gazprom Export.

OMV estimates that the potentially affected gas volume for Austria's Virtual Trading Point could reach up to 7,400 megawatt-hours. Despite the possible disruption, the company assured customers that it would deliver the full contracted gas volumes. "We have been preparing for a possible supply disruption for a long time. In any case, our country's gas supply is secure. Our gas storage facilities are full," Austrian Energy Minister Leonore Gewessler said on X.

In May, OMV cautioned that Gazprom's gas supplies might face suspension due to a court ruling, although it did not specify the case. Back in April, Gazprom had taken steps to block OMV from pursuing international arbitration by appealing to a Russian court.

Gazprom becomes Russia’s least profitable company in 2023, Forbes reports

In the meantime, Gazprom’s net cash flow from operating activities increased by 5% to $242 billion in 2023.

The Kyiv IndependentKateryna Hodunova

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