OMV, left without Russian gas, is trying to challenge the ban of the Russian court

Austrian OMV is trying to challenge the ban of the Russian court on international arbitration, according to which it won compensation of 230 million euros from Gazprom Export. The company has already filed its second cassation complaint.

Austrian OMV continues to challenge the decision of the Arbitration Court of St. Petersburg and the Leningrad Region, which in May banned OMV Gas Marketing and Trading GmbH from continuing arbitration proceedings in Stockholm, but did not stop him. In November, OMV was awarded 230 million euros in compensation. It was about a German contract, the supply of which ceased in 2022. OMV announced that they would withdraw funds from payment for current deliveries under the Austrian contract. After that, on November 16, Gazprom stopped exporting for the Austrian company.

Earlier, OMV had already tried to challenge the decision of the Russian arbitration court and filed a cassation appeal to the Arbitration Court of the North-Western District, but in September the arbitrators refused it for the same reasons. Gazprom insists that in the current international situation it cannot count on the impartial attitude of arbitrators, and sanctions make it difficult for it to protect its rights.

OMV Gas Marketing and Trading GmbH was not satisfied with this and in November it filed a cassation complaint again — in The Supreme Court of Russia. This information is contained in the file of the court.

Alexey Grivach, Deputy Director of the National Energy Security Fund (NWF), believes that OMV's actions are part of a legal strategy to protect its interests after the situation returns to a full legal course.

Maxim Khudalov, chief strategist at Vector X investment company, says that, obviously, OMV has hope that in the absence of a ban, Gazprom can accept the version of the European court.

"Actually, the work of lawyers is to sue and challenge unfavorable decisions. So they act according to their business logic. At the same time, they do not care about reputational risks, since the company apparently does not expect a quick resumption of normal relations with Russia," the expert notes.

Among other things, the Russian arbitration court not only banned OMV from continuing the arbitration proceedings, but also imposed a fine in case of violation of 575 million euros, which was originally demanded by the Austrian company under a German contract. This may be another reason why the Austrian company is actively challenging the decision of the Russian arbitration.

"Of course, because Gazprom can set off the requirements and ask to pay the difference," says Maxim Khudalov.

As EADaily reported, on November 16, Gazprom stopped supplying gas to Austrian OMV, as the settlement procedure with unfriendly countries requires immediate payment of bills. At the same time, the company's exports to Europe have not changed, and to Austria itself decreased by only 15-20%. As ICIS analyst Tom Marzek-Manser noted, both Hungarian MVM, Slovak SPP and Azerbaijani Socar can trade Russian gas at the Austrian Baumgarten hub.