Expert: Austria Can End Gas Contract with Russia

Expert: Austria Can End Gas Contract with Russia

Image: APA/AFP/NIKOLAY DOYCHINOV

 

A leading Austrian legal expert has suggested that the country’s energy company, OMV, could terminate its gas supply contract with Russian gas giant Gazprom, which is set to run until 2040.

Professor Andreas Kletecka, a civil law expert at Salzburg University, told ORF that if Gazprom failed to meet its obligations, OMV could legally terminate the agreement. Kletecka is leading a commission tasked with reviewing the OMV-Gazprom contract and has access to its confidential details.

“As is the case in practically every legal system, if the debtor is in default and has been given a deadline to remedy the situation but still fails to deliver, the contract can be ended,” Kletecka explained.

However, Kletecka emphasised that his comments reflect his personal opinion, and the full report from the commission has yet to be released.

Climate Protection Minister Leonore Gewessler has already voiced her support for terminating the contract. “If there is an option to exit, then I am in favour of doing so. Ultimately, this decision lies with OMV,” Gewessler said.

The dispute between OMV – in which the Austrian government holds a 31.5% stake – and Gazprom escalated earlier this month when OMV announced plans to deduct a court-awarded compensation claim from its monthly gas bill. In response, Gazprom halted supplies. Since November 16, OMV has not received any gas directly from Gazprom, although Russian gas continues to reach Austria indirectly through open trading.

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