Russia's share of gas supplies to Austria climbed to nearly 100% in December

According to Euractiv, Austria's dependence on Russian gas rose from 80% to 98% over the past two years. By comparison, Germany saw its dependence fall from 55% to zero over the same period. Other EU countries are also moving closer to complete independence from Russian gas.

Critics say Austria is effectively supporting Russian aggression and helping to co-finance the war. With parliamentary elections approaching this autumn, Austrian Energy Minister Leonore Gewessler has called for swift action to reverse the current situation.

Compared with the 17% share the country reached in October 2022, the figure of 98% represents a huge increase. It should be noted, however, that the initial drop was largely achieved because Russia restricted gas supplies to Europe. The trend soon reversed, though, and Russian gas had already regained a 43% share of supplies to Austria by August last year.

The high share of Russian gas is partly due to rapidly falling gas consumption in Austria—from 100 TWh to 75 TWh in 2023, according to data from the energy ministry. Another reason is a contract running until 2040. Austrian energy company OMV is committed to a “take-or-pay” agreement with Gazprom for up to 60 TWh a year, enough to cover almost the country's entire natural gas consumption. In 2018, Vladimir Putin himself even came to Vienna to attend the signing of a long-term gas supply contract.

Russian supplies are also most likely currently cheaper than those from neighboring Germany, which has increased gas transmission fees in recent months. This move is therefore making gas imports from Germany more expensive for Austria, Czechia and other countries. Austria therefore has no other option but to accept Russian gas—and, at the same time, it is an economically advantageous purchase.

In 2022, Austria imported gas worth approximately 7 billion euros. In 2023, this figure is expected to have fallen to around 3 billion euros as a result of lower prices.

EU is pressing Austria to draw up a plan as soon as possible

Minister Gewessler has proposed a three-step plan to help the country get rid of Russian gas. The EU hopes that the country will completely phase out Russian gas by 2028. A review by Brussels in 2023 found that Vienna had not even begun planning this yet.

First, local energy companies should prove that they can manage without Russian gas and start increasing their share of non-Russian gas, ideally through the EU's joint purchasing platform, AggregateEU.

As a second step, she proposes breaking the long-term contract with Gazprom, which obliges Austria to take gas whatever happens. This step is likely to face strong opposition from Austrian conservatives, who will argue that the current arrangement makes economic sense.

The final step involves including natural gas—and independence from Russia—in a review of the country's national security strategy.

Given Austria's political neutrality, the plan would require a two-thirds majority in parliament. This means the governing center-right and Green coalition would depend on support from the center-left.