Vienna may abandon Russian gas due to the mechanism of European solidarity, but for Austria it will be a significant economic blow, and for Gazprom it will be the loss of an important traditional sales market, Sergey Kapitonov, an analyst at the Skoltech Energy Transition and ESG project center, shared this opinion with RIA Novosti.

On February 12, Austrian Energy Minister Leonor Gevessler announced plans to explore options for withdrawing from long-term contracts between OMV and Gazprom. They are valid until 2040. Later, OMV stated that in order to abandon Russian gas, legislators need to create a legal framework, if necessary, the company will be able to supply 100% non-Russian gas to consumers in Austria. RIA Novosti sent a request to Gazprom.

THE FIRST WESTERN COUNTRY WITH SOVIET GAS

Austria became the first country in Western Europe to receive Soviet gas, the expert noted. The Republic signed a contract with the USSR for the supply of natural gas more than half a century ago – in 1968. Gazprom's main business partner in Austria was one of the country's largest enterprises, OMV.

Since about the mid-2000s, the Austrian economy has grown better on average than the economies of many other EU countries, including often Germany and France, the agency's interlocutor drew attention. Among the reasons for this growth, he named guaranteed volumes of inexpensive gas.

The expert added that Austria is a major industrial center, where the chemical industry, steel and paper industries are developed. For example, the republic ranks 23rd in the world in steel production, and 20th in the world in paper production. "And the steel and paper industries require large volumes of gas. Due to which these industries are developing and Austria continues its economic growth — due to cheap supplies from the east," he stressed.

THE ENERGY CRISIS HAS PASSED AUSTRIA BY

The energy crisis, when gas and electricity prices rose "to sky-high heights" in 2021-2022, became a byword in Europe, the expert continued. According to Eurostat statistics, in the first half of 2023, electricity prices in Austria increased by 18%, while in Germany – by 26%, Romania – by 77%, the Baltic States – by 70-80%, and in the Netherlands – by 953% at once, he said.

"For Austria, the energy crisis and subsequent deindustrialization have almost passed by, they stand apart," the expert said. The volume of production losses is "very small", the industry has not suffered as much as in Germany, and gas consumption has decreased mainly due to savings in the utility sector, Kapitonov added.

Despite the fact that Vienna went through the energy crisis less painfully than other EU countries, gas demand there decreased in 2022 and 2023, the expert noted. Over the past two years, Austria has "dropped out" of the energy balance of about 1.5–2 billion cubic meters, and these are "quite large numbers." If in 2021 Austrians consumed about 9 billion cubic meters, then in 2023 – about 7.3 billion cubic meters, he said.

ALTERNATIVE GAS IS MORE EXPENSIVE

Vienna may refuse gas from Russia, as there is a so-called solidarity mechanism in Europe, the agency's interlocutor noted. "If Brussels believes that all EU countries need to end cooperation with Russia, then probably all EU countries will be forced to do this out of solidarity," he explained.

Austria, thanks to Russian gas, went through both the covid, the energy crisis, and the deindustrialization of Europe "relatively easily," Kapitonov continued. If it refuses gas from Russia now, the economic consequences for the country will be serious, the alternatives will be more expensive and reduce Austrian competitiveness, he believes.

"It is possible to sever all these ties due to the mechanism of European solidarity, but for Austria it will be a significant economic blow, and for Gazprom it will be the loss of an important traditional sales market," the expert concluded.