Tensions Rise Over Russian Gas Supplies Amid Austria Contractual Dispute

Gazprom plans to supply 42.4 million cubic metres of gas to Europe via Ukraine, maintaining Monday's levels. A contractual dispute with Austria's OMV has caused tensions, leading Gazprom to halt supplies to OMV. Flows are mostly stable but below normal levels, impacting European markets.

Russian energy giant Gazprom has announced plans to deliver 42.4 million cubic metres of gas to Europe through Ukraine on Tuesday, maintaining the same levels as Monday, while the nominations for gas deliveries from Slovakia to Austria saw a slight increase.

The European energy sector remains tense following a contractual clash between Gazprom and Austria's OMV. This dispute resulted in the suspension of gas supplies to the Vienna-based company last Saturday, after OMV threatened to seize part of Gazprom's gas as compensation for a legal win in an arbitration case.

While daily gas exports to Europe via Ukraine have remained steady, with continuing deliveries to Austria, the flow of gas has decreased by 12% compared to levels before the stoppage to OMV. It remains uncertain who is purchasing the gas that was intended for OMV. Nominations for gas to the Czech Republic have remained steady this month, and data from Eustream indicates minimal changes in gas nominations into and out of Slovakia.

(With inputs from agencies.)