Russia resells more gas in Europe after halting supplies to Austria

According to Reuters, Russian Gazprom halted supplies to the Austrian company OMV on November 17 after it threatened to impound some of the Russian state firm's gas as compensation for winning an arbitration case over a contractual dispute.

Flows to Austria remained suspended on November 17, but overall daily supply via Ukraine - the main transit route for Russian gas to the EU - continued at 42.4 million cubic meters (mcm), Gazprom confirmed, without commenting further. This volume was roughly the same as on every other day over the past year.

Austria had been receiving 17 mcm before the cutoff, and these volumes are now being resold to new buyers in Europe.

Slovak state-owned firm SPP stated that it was still receiving gas from Russia and suggested that others were purchasing more, as there was still "great interest" in Russian gas in Europe.

A source familiar with Russian gas supplies in Europe noted that Russian gas was still cheaper than many other sources, which is why the Austrian volumes were quickly resold. The source declined to name the companies that bought the gas previously destined for Austria.

• Austria's energy company OMV was informed by Gazprom that the Russian gas producer would halt deliveries of natural gas via Ukraine to OMV from 0500 GMT on Nov. 16 following OMV winning an arbitration case.