Russia notified Austria Friday it will suspend natural gas deliveries through Ukraine starting Saturday, marking a symbolic end to Moscow’s decades-long role as Europe’s primary gas supplier and highlighting the continent’s dramatic shift away from Russian energy dependence.
The announcement affects Austria, the main recipient of Russian gas through Ukraine, leaving only Hungary and Slovakia as significant customers of Russian gas in Europe. The development represents a stark contrast to 2022, when Russia supplied 40% of the European Union’s gas needs before its invasion of Ukraine.
Austrian Chancellor Karl Nehammer moved to reassure the public about the country’s energy security. “No home will go cold … gas-storage facilities are sufficiently full,” he told reporters, noting that Austria had anticipated and prepared for this development.
OMV, Austria’s largest energy supplier, confirmed it has secured alternative gas imports through Germany, Italy, and the Netherlands to meet customer demands. The company disclosed the supply termination following a contractual dispute with Russian state-owned Gazprom.
The suspension comes as Ukraine prepares to end its transit agreement with Gazprom by year’s end, aiming to deprive Moscow of revenues that Kyiv says fund the ongoing war. Ukrainian Foreign Minister Andrii Sybiha characterized Russia’s action as weaponizing energy but expressed confidence in Europe’s ability to ensure energy security.
“The era of Europe relying on Russian gas is over,” Sybiha wrote on social media platform X. “Time to fully cut Russian energy profits — and war funding.”
The timing carries historical significance, as Austria was among the first Western European nations to purchase Soviet gas, signing a contract in 1968 just months before the Soviet invasion of Czechoslovakia. Russia shipped approximately 15 billion cubic meters of gas via Ukraine in 2023, representing only 8% of peak Russian flows to Europe in 2018-2019.
The development coincided with the first phone conversation between Russian President Vladimir Putin and German Chancellor Olaf Scholz since December 2022, with the Kremlin stating Russia remains open to energy deals if Berlin shows interest.
Ulrich Schmid, professor of Eastern European studies at the University of St. Gallen, suggested the timing may reflect Moscow’s increased confidence following Donald Trump’s presidential election victory and his pledges to quickly end the Ukraine war.
EU Energy Commissioner Kadri Simson assured that alternative supplies are available for affected countries. “We have been very clear that alternative supply is available and there is no need for the continuation of Russian gas transiting via Ukraine to Europe,” Simson told Reuters at a UN climate conference in Azerbaijan.
European gas markets appeared unruffled by the news, with the benchmark price declining slightly to 45.72 euros per megawatt hour at trading close.
The International Energy Agency reports that in 2023, the Ukraine transit route supplied 65% of gas demand in Austria and its eastern neighbors Hungary and Slovakia. Hungary has largely shifted to importing Russian gas via the TurkStream pipeline beneath the Black Sea, while Slovakia continues to receive supplies through Ukraine.
This transition marks a fundamental reshaping of European energy security, with the continent increasingly turning to diversified sources, including U.S. liquefied natural gas, as it moves away from its historical dependence on Russian supplies.