various to Russian fuel for now – EU nation chief

28 various to Russian fuel for now – EU nation chief

Austrian Chancellor Karl Nehammer stated the pipeline system format in Europe implies that Vienna can’t swap to different sources but

Austria is certain to proceed receiving the majority of its fuel from Russia within the coming years, Chancellor Karl Nehammer has acknowledged. He added that his authorities has been taking measures to cushion the potential slicing of fuel transit by means of Ukraine on the finish of 2024 and is making an attempt to diversify suppliers.

In an interview with Austria’s broadcaster ORF on Monday, Nehammer argued that “Russian fuel per se isn’t cheaper than some other.” Nonetheless, the way in which the pipeline system is organized in Europe implies that Russian gasoline has dominated power markets in Japanese and Central Europe for many years.

In keeping with the chancellor, Austria could someday do with out Russian fuel, however that is unlikely to occur within the quick time period. In the interim, Vienna will proceed to purchase gasoline from Moscow as its quick precedence is to see by means of the approaching winter with out deciding who will get power – households or industries, he stated.

Nehammer identified that Austria’s largest fuel supplier, OMV, has contracts signed with Gazprom till 2040 and can’t merely pull out of these on the stroke of a pen.

The chancellor assured viewers that his authorities started to arrange for antagonistic situations final 12 months.

For the primary time, we constructed up a strategic reserve,” the chancellor famous. He stated a “great amount” of that saved fuel isn’t Russian and defined that Austria “has discovered new methods” to supply gasoline, permitting it to change into “extra impartial” from Russia’s majority-state-owned fuel large Gazprom.

He additionally revealed that Austria is increasing conduits connecting it with neighboring Germany and Italy within the hope of discovering various fuel sources. Nehammer additionally talked about Croatia as one other accomplice on this regard.

In July, OMV CEO Alfred Stern instructed the Monetary Instances that his firm would proceed shopping for Russian fuel so long as it was authorized underneath EU laws. He additionally warned that inserting restrictions on such imports would drive costs up.

Masking roughly 30% of Austria’s fuel wants, OMV was among the many first to conform to pay for Russian fuel in rubles underneath a brand new settlement mechanism, which Moscow launched final 12 months as obligatory for ‘unfriendly nations’ that had imposed sanctions on Russia.

Stern stated on the time that abandoning Russian fuel was not possible for Austria and would have dire penalties for the nation’s financial system and power safety.

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