The Austrian authorities are looking for ways to refuse Russian gas before the end of the long-term contract concluded with Moscow. In particular, prematurely terminate the contract, which expires in 2040. But at the same time, dependence on Russian gas has reached a huge level, according to the latest official data, about 98%.

Austria is seeking to accelerate the end of its gas relationship with Russia, which could reduce its dependence on Moscow, but faces complex legal and political challenges, writes Politico.

Russian gas could be stopped, and the contract with Moscow could be terminated early

Austrian Energy Minister Leonore Gevesler announced on Monday that Austrian companies may phase out Russian gas as they seek a solution to end a long-term contract with Moscow that expires in 2040.

“Our dependence on Russian natural gas threatens the prosperity, security and future of our country,” the Austrian minister said, calling Austria’s dependence on Moscow a “clear market failure” that meant “the state must step in” now.

Gewessler said that Austria’s energy companies should gradually increase the share of gas supplies from other sources.

The government will also commission an independent study to assess the cost of terminating the contract between Russian giant Gazprom and OMV.

The problem is that terminating the contract, the contents of which are confidential, would likely result in an early termination fee of more than 1 billion euros, said Florian Stangl, an Austrian lawyer.

The only way to avoid this would be to pass a law banning the import of Russian gas in general, although this could also lead to Gazprom starting an arbitration case against OMV, according to the Austrian lawyer.

Austria has been criticized for its relations with Russia and its growing dependence on Moscow

The EU wants to phase out fossil fuel imports from Russia by 2027. Unlike other EU countries, which have already significantly reduced these imports, Austria has remained dependent on Russian gas. Thus, in December, dependence on Russian gas increased to 98%, which is the highest indicator since Moscow’s attack on Ukraine.

Austria has come under heavy criticism for maintaining close trade ties with Russia. In December, Vienna threatened to vote against Brussels’ 12th sanctions package after Ukraine branded Austrian banking group Raiffeisen a “war sponsor” after it refused to leave Russia.

Before the war in Ukraine, Russia exported 155 billion cubic meters of gas to Europe every year. They fell to about 60 billion cubic meters in 2022 and halved from the previous year to 28.3 billion cubic meters in 2023, according to Reuters estimates.