Austria's OMV has terminated its contract with Gazprom until 2040
A major oil and gas company from Austria has terminated its contract with Gazprom.
OMV management has decided to end the cooperation, which was intended to last until at least 2040.
The energy company could have received gas from Gazprom Export for another 15 years, but chose to terminate the agreement, RIA Novosti reports.
OMV initiated the termination of the contract.
The company said the decision was made amid “numerous material breaches of contractual obligations” on the Russian side.
It is specified that the decision to terminate the document “comes into force immediately.”
Austrian OMV had previously initiated legal proceedings against Gazprom.
The Stockholm Arbitration Court awarded the company 230 million euros for allegedly failing to deliver gas.
The company decided to offset this amount against current deliveries.
Gazprom regarded this as a failure to fulfill payment obligations and supplies were stopped on November 16 of this year.
Almost a month later, OMV decided to terminate the long-term contract with Gazprom Export.
Gazprom concluded this agreement with the Austrians in 2006.
Earlier it became known that Bulgaria threatened to stop the transit of Russian gas to Hungary and Serbia if problems with payment arose.
Difficulties may arise against the backdrop of US sanctions against Gazprombank.
